US domestic flat rolled prices inch higher

Even in the wake of production disruptions and diminished activity due to Hurricane Sandy hitting the Eastern US, flat rolled spot prices are still on the rise. Because of the storm, the US domestic scrap market, particularly on the East Coast, will likely take longer than anticipated to settle; but with most expecting an uptrend, a second flat rolled price increase is likely any day now. For now, while flats mills have had success implementing about $1.00 cwt. ($22/mt or $20/nt) of their mid-October increase, many large  buyers still are paying little to no increase in prices. Flats mills are quoting approximately $30.00-$31.00 cwt. ($661-$683/mt or $600-$620/nt) ex-Midwest mill on hot rolled coil (HRC) at the moment, and while spot prices have not yet reached that level, a scrap increase and a second flats increase would help boost prices, at least in the short term.

Since last week, domestic HRC spot prices have increased by about $1.00 cwt. on the low end and are now between $29.00-$30.00 cwt. ($639-$661/mt or $580-$600/nt) ex-Midwest mill. Cold rolled coil (CRC) spots have also firmed and can now be found between $34.00-$35.00 cwt. ($750-$772/mt or $680-$700/nt) ex-Midwest mill. On the import side, while Mexican prices are unchanged, trader sources say it is only because Mexican mills are full through year-end and have not yet released new prices. Once they do, though, the previous range is unlikely to still be attainable.

**DDP loaded truck delivered into Houston