How will the recent price move fare in the US flats market?

Last week, SteelOrbis reported that in the wake of the cancellation of the Russian suspension agreement, US flats mills were likely to roll out a price increase to “strike while the iron is hot.” Since then, both US Steel and AK Steel have rolled out a $1.00 cwt. ($22/mt or $20/nt) price increase, effective immediately on new orders.  At the same time, soft iron ore prices and a forecasted $30/lt dip in US domestic scrap prices for November may make the increase a tough pill to swallow.  For now, the most commonly reported spot price transaction range remains unchanged, still at $32.00-$33.00 cwt. ($705-$727/mt to $640-$660/nt), ex-Midwest mill.

On the import front, offshore producers have been chomping at the bit to build relationships with traders in hopes of picking up some extra tons, especially since Russian producers will soon be forced out of the market.  Offshore prices have continued to remain steady since our last report a week ago, although sources close to SteelOrbis say Brazilian mills may be open to negotiating deals up to $0.50 cwt. ($11/mt or $10/nt) below their average range.