US domestic flat rolled prices are getting increasingly closer to official mill asking prices, boosted by steady demand and a strengthening scrap market. As anticipated, a holiday week this week has resulted in minimal activity overall, but the flat rolled market's uptrend has clearly sustained. Both hot rolled coil (HRC) and cold rolled coil (CRC)spot prices have increased another $1.00 cwt. ($22/mt or $20/nt) on the high end to $30.00-$32.00 cwt. ($661-$705/mt or $600-$640/nt) and $35.00-$37.00 cwt. ($772-$816/mt or $700-$740/nt), respectively, both ex-Midwest mill. The high end of both ranges is now only about $0.50 cwt. ($11/mt or $10/nt) shy of official mill asking prices following the third round of price increase announcements since late May.
Activity levels are stable, according to SteelOrbis sources, and demand has sustained, allowing mills to continue to push for higher prices. Additionally, busheling scrap prices are settling higher than some earlier expectations, with July prices up about $30-$40/lt in the Midwest over June levels. As a result, flat rolled spots are likely to remain strong through at least July, although some are still hesitant over the long term trend. So while domestic activity is strong, futures bookings have not improved dramatically. Mexico is anticipated to follow the US domestic market, but has been slow to do so, according to trader sources.
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week |
|
| US domestic | ||||
| HRC | $30.00-$32.00 | $661-$705 | $600-$640 | ↑$1.00 cwt. on high end |
| CRC | $35.00-$37.00 | $772-$816 | $700-$740 | ↑$1.00 cwt. on high end |
| China* | ||||
| CRC | $32.00-$33.00 | $705-$728 | $640-$660 | neutral |
| Mexico** | ||||
| HRC | $30.00-$31.00 | $661-$683 | $600-$620 | neutral |
*DDP loaded truck in US Gulf ports
**DDP loaded truck delivered into Houston