US domestic flat rolled steel mills put out their second round of price increases this past week, and some believe that the US HRC pricing uptrend won’t stop until it reaches $40 cwt. ($882/mt or $800/nt), ex-mill.
Last week, before mills’ latest announcement, US HRC was being heard in the range of $32.50-$34.50 cwt. ($717-$761/mt or $650-$690/nt), ex-mill. This week, however, after word of the increase made its way through the marketplace, prices firmed to $33-$35 cwt. ($728-$772/nt or $660-$700/nt), ex-mill, but sources close to SteelOrbis note that deals toward the lower end of that range are fading fast and “won’t be around for much longer.”
SteelOrbis’ current forecast puts US HRC spot market pricing on a strong uptrend through the middle to late second quarter of 2018, as import arrivals are expected to remain lighter throughout that time period as a result last year’s mid-year offshore buying patterns.
During that time, many US buyers “double stocked” domestic and import HRC inventory, which led to depressed offshore buying activity during Q4 2017.