US domestic flats mills this week rolled out across-the-board price increase announcements, which, if accepted, would firm the current spot price range by approximately $1.00 cwt. ($22/mt or $20/nt). Current spot prices, though, are unmoved since our last report a week ago and continue to hold at approximately $28-$29 cwt. ($617-$639/mt or $560-$580/nt), ex-Midwest mill.
An internal memo from ArcelorMittal said the decision related in part to extending lead times and an “obvious need for price relief from the past six months of price erosion.” Nucor and NMLK were quick to follow suit.
Some are applauding US CRC producers for their reserve in the announcement; the modest increase keeps domestic offers competitive with their offshore counterparts, and many feel the $20/nt announcement is conservative enough to allow trade case filings to move forward. At the same time, offshore mills are playing gloves-off and some are offering revised, lower pricing in hopes of attracting US buyers.
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic | ||||
| Ex-Midwest mill | ||||
| CRC | $28-$29 | $617-$639 | $560-$580 | neutral |
| Brazil* | ||||
| CRC | $26-$28 | $573-$617 | $520-$560 | down $2.00 cwt. |
| India* | ||||
| CRC | $28-$29 | $617-$639 | $560-$580 | neutral |
| Russia* | ||||
| CRC | $26-$28 | $573-$617 | $520-$560 | neutral |
| China* | ||||
| CRC | $25-$27 | $551-$595 | $500-$540 | down $1.00 cwt. |
| *DDP loaded truck in US Gulf ports | ||||