In late July, US flat rolled steel mills announced they’d be raising HRC, CRC and HDG coil prices by $2.00 cwt. ($44/mt or $40/nt), effective immediately. Last week, it seemed the announcements fell flat.
For example, one week after the announcement, US HRC prices went down week-over-week, from $22-$23 cwt. ($485-$507/mt or $440-$460/nt), ex-mill, to an average of $21-$23 cwt. ($463-$507/mt or $420-$460/nt). The downtrend, sources say, was likely due to mills “booking tons at whatever price they could get, as a means of helping to extend lead times.”
US CRC, on the other hand, remained stable after the announcement, at $30-$32 cwt. ($661-$705/mt or $600-$640/nt), ex-mill.
Yet while the deepest discounts seem to be gone this week, US HRC prices have not moved markedly. Sources tell SteelOrbis that most ex-mill transactions are trending at $22-$23 cwt. ($485-$507/mt or $440-$460/nt,) which reflects a $1.00 cwt. ($22/mt or $20/nt) increase on the bottom end of last week’s range.
US CRC prices, however, continue to hold steady. This week’s average transaction range continues to hold at $30-$32 cwt. ($661-$705/mt or $600-$640/nt), ex-mill, which is consistent with what was reported a week ago.
Sources also believe that in light of this month’s unexpected sideways-to-up scrap pricing, that flats mills are likely to announce a second increase “sooner than later.”