Last week, US domestic flat rolled steel mills announced they would be raising prices by a minimum of $2.00 cwt. ($44/mt or $40/nt), effective with all new orders, yet the announcement has not prevented prices from slipping.
Spot market prices for US domestic CRC, which were heard in the range of $45.50-$47.50 cwt. ($1,003-$1,047/mt or $910-$950/nt), ex-mill last week, have since softened by $1.00 cwt. ($22/mt or $20/nt) on the bottom end, to $44.50-$47.50 cwt. ($981-$1,047/mt or $890-$950/nt), ex-mill, which is consistent with our prior prediction that US CRC prices would soon dip below $45.00 cwt. ($992/mt or $900/nt) ex-mill.
Some sources have reported hearing that deals slightly below the current range are available to clients “who are looking to book serious tonnage.” Others say they question whether the price hike will ultimately be successful.
“We all figured the price increase would gain some acceptance if the mill strikes happened, but it looks like the mills and the unions came to an agreement,” a source said.
Overall steel inventories, however, are still “on the thin side,” another source said. “If there’s a rash of buying activity because people think the market has bottomed out, that could help prices, but considering that prices are down from a week ago, I don’t have a lot of confidence that this is what’s going to happen.”