This week, US domestic flat rolled steel mills, including Nucor, NLMK USA, AK Steel and ArcelorMittal USA (AMUSA) announced a fourth flat rolled steel price increase. In a letter to customers, Nucor, NLMK USA, AK Steel indicated they would be raising prices for all flat rolled steel products, including US domestic hot rolled coil (HRC) by a minimum of $2.00 cwt. ($44/mt or $40/nt), ex-Midwest mill. AMUSA, however, announced a new minimum base price for US HRC, of $30.00 cwt. ($661/mt or $600/nt).
And while it has not yet been determined whether mills’ will succeed in obtaining their new desired price, current US domestic HRC pricing has firmed by $1.00 cwt. ($22/mt or $20/nt) on the bottom end since our last report a week ago. This brings the current average spot market price transaction range to $27-$28 cwt. ($595-$613/mt or $540-$560/nt), ex-Midwest mill.
“[US] scrap prices are expected to settle up another $20-$30/mt this month, so it could be argued that the price increase will be accepted,” said one SteelOrbis source. “The mills are going to continue to try to get what they can while they can, and that even though prices are on an upswing, a lot of people question whether prices will correct after the first of the year.”