Mills grow bullish as US flats prices continue to firm

US domestic flat rolled mills have not backed down from getting at least a portion of their announced increases, and thus spot market prices have continued to trend higher. Few, if any, buyers have been paying the full $4.00 cwt. ($88/mt or $80/nt) in announced increases yet, but sources told SteelOrbis that more and more mills have been quoting prices as high as $35.00 cwt. ($772/mt or $700/nt) ex-Midwest mill on hot rolled coil (HRC). No other mill has publicly followed AK Steel's third increase last Monday for $1.50 cwt. ($33/mt or $30/nt), but some believe that it may have given an added psychological boost to the market and gave the market a sense of urgency. While most buyers still aren't confident enough to stock inventories yet, those that had been sitting on the fence waiting to buy have now gone out placed a few orders as needed.

Prices appear poised to gradually move upward for at least the next few weeks, especially as scrap prices could rise again in September, although less so than in early August. As for imports, order activity has been sporadic in the Midwest and East Coast, and typical import buyers have been placing smaller orders offshore than usual. Imports are having a much more pronounced impact on the US West Coast domestic market, especially as Chinese offers of cold rolled coil (CRC)--which are about $0.50-$1.00 cwt. ($11-$22/mt or $10-$20/nt) below prices delivered to the Gulf--are making it difficult for West Coast mills to raise prices; officially, mills on the West Coast have only followed the first $2.00 cwt. ($44/mt or $40/nt) announced increase as demand and purchasing activity remains extremely lethargic.

**DDP loaded truck delivered into Houston