Last week, US domestic flats mills announced their second $2.00 cwt. ($44/mt or $40/nt) price increase in less than a month. Once the first increase was announced, sources said deep deals and discounts that had been available to buyers who were looking to book significant tons had been removed from the table, but it was unclear whether mills would be successful in pushing prices higher.
This week, however, sources say at least some of the increase is likely to gain traction. “It appears we are finally working our way off of the bottom of pricing,” one source said, adding that at this point, there’s “nowhere to go but up.”
The most “average” spot market transaction range may be stable, at $34-$35 cwt. ($750-$772/mt or $680-$700/nt), ex-mill, but SteelOrbis sources have indicated that a handful of buyers are paying up to $1.00 cwt. ($22/mt or $20/nt) higher. At least one source said that one US flats mill is willing to sell below $34 cwt. ($750/mt-$680/nt) to anyone who is willing to show up with an order. However, such deals are considered outliers to the overall market trend.
As for the import market, US import HRC from Serbia and Korea are being heard in the US market at $33.00-$33.50 cwt. ($728-$739/mt or $660-$670/nt) DDP loaded truck in US Gulf ports.