Scrap increase helps push US domestic flats prices higher

The US domestic flats market has been mostly quiet in the last week as buyers reluctant to pay substantially higher prices have been at a standoff with mills, which are quoting about $37.50 cwt. ($827/mt or $750/nt) on hot rolled coil (HRC) and $42.50 cwt. ($937/mt or $850/nt) for cold rolled coil (CRC) for all new orders. However, while busheling scrap prices aren't expected to surge by the $50/lt some had predicted, an increase of approximately $20-$30/lt in the Midwest and East Coast is all but guaranteed this month, already giving mills the necessary leverage to push spot market prices higher. In the last week, US domestic HRC and CRC spot prices have both increased another $1.00 cwt. and can now be found between $35.00-$36.00 cwt. ($772-$794/mt or $700-$720/nt) and $40.00-$41.00 cwt. ($882-$904/mt or $800-$820/nt), respectively, both ex-Midwest mill.

The import market has been similarly quiet. Although a substantial amount of Russian HRC was booked a few weeks back at about $31.00 cwt. ($683/mt or $620/nt) DDP loaded truck in US Gulf ports-- set to arrive in March--Russian mills have increased offer prices to the US by about $2.00 cwt. ($44/mt or $40/nt) on the low end in the last week to $33.00-$34.00 cwt. ($728-$680/mt or $660-$680/nt) DDP loaded truck in US Gulf ports--too close to US spot prices to collect much interest.