Before the Memorial Day holiday, US flats mills announced their second price increase in less than a month. Although AMUSA set a new HRC minimum base price of $27 cwt. ($595/mt or $540/nt), ex-mill effective with all new orders, other mills announced an increase of $2.00 cwt. ($44/mt on $40/nt), but did not attempt to establish new minimum base pricing.
The situation for HRC spot market pricing is similar to what’s been seen within the CRC market. Namely, although mills are quoting at higher price points (with the average quote being offered at $25-$27 cwt. ($551-$595/mt or $500-$540/nt), ex-mill), the “realistic transaction range for most buyers is lower than that,” a source said.
“Sure, the mills are quoting at the higher range but it’s basically a negotiation starting point,” he continued. “Anyone who shows up with a real order, with volume tons in hand, can absolutely do better.”
Other sources have confirmed that most transactions are still taking place at $23-$24 cwt. ($507-$529/mt or $460-$480/nt), ex-mill, adding that “buyers who don’t need a lot of steel aren’t getting that discount.”
Imported HRC from Mexico and Korea are being offered at similar price points, FOB Texas and DDP loaded truck in US Gulf coast ports, respectively. In terms of current import tonnages, the most recent preliminary census data from the US Department of commerce indicates that during the month of April, the US imported 104,961 mt of HRC from global sources. In contrast, census data reflects the US imported 145,171 mt of HRC from global sources in April 2019.