Import options on the rise as US flats prices inch higher

US domestic flat rolled spot prices have increased this week, as the fourth round of price increases has kept the market firm. Hot rolled coil (HRC) spot prices are now up to $32.00-$32.50 cwt. ($705-$716/mt or $640-$650/nt) ex-Midwest mill, up $0.50 cwt. ($11/mt or $10/nt) on the low end as customers report only extraordinarily large orders are able to attain sub-$32.00 cwt. level pricing. Cold rolled coil (CRC) spots are up $1.00 cwt. ($22/mt or $20/nt) in the past week as mid-September lead times have kept mills bullish. US Steel and its Lake Erie Works workers being unable to agree on a deal this past week is likely to help keep spot prices stable in the short term, but concerns about whether mills will be able to adequately fill October order books now that buyer inventories have risen are preventing buyers from being overly optimistic.

That sentiment extends to the import market as well. In the last couple weeks, the number of offshore mills offering HRC to the US has increased, but US buyer interest has not. So while offers are plentiful, they aren't having much impact on the US domestic market. Russia, Italy and Turkey are all offering HRC futures at $30.00-$31.00 cwt. ($661-$683/mt or $600-$620/nt) DDP loaded truck in US Gulf ports, but those prices are too high for most to take the risk. Chinese CRC prices, however, are affecting the US domestic flat rolled market on the West Coast. Chinese CRC offers are $33.00-$34.00 cwt. ($728-$750/mt or $660-$680/nt) DDP loaded truck in US Gulf ports, and about $0.50 cwt. cheaper for West Coast delivery, where US domestic spot prices are currently $4.00-$5.00 cwt. ($88-$110/mt or $80-$100/nt) higher.

*DDP loaded truck in US Gulf ports

**DDP loaded truck delivered into Houston