US domestic flat rolled prices start to climb after mills spur the market

US domestic mills have increased their asking prices, spurring a pricing uptick in the flat rolled market this week. AK Steel announced last week it would increase its flat-rolled spot prices by at least $2.50 cwt. ($55/mt or $50/nt), and sources have confirmed that since then ArcelorMittal, US Steel and Nucor have followed suit, also increasing their prices by about $2.50 cwt.  

 

In the wake of those increases, hot rolled coil (HRC) spot prices have inched upward about $1.00 cwt. ($22/mt or $20/nt), settling in the general range of $32.50-$33.00 cwt. ($716-$720/mt or $650-$660/nt). Cold rolled coil (CRC) spot prices have also increased, but only by about $0.50 cwt. ($11/mt or $10/nt), and are now at about $37.00-$38.00 cwt. ($815-$837/mt or $740-$768/nt). However, sources predict that these higher prices won’t stick because there’s plenty of supply right now and China continues to offer  attractive import prices, which are  expected to drop even lower once supply increases as Chinese workers return from a week-long national holiday. 

 

As such, the import market hasn’t seen much activity this week, aside from a $1.00 cwt. increase on India’s CRC offers, which are now at about $34.00-$35.00 cwt. ($749-$771/mt or $680-$700/nt). Sources tell SteelOrbis that Indian mills are justifying the increase because the rupee is gaining strength, but they’re doubtful buyers will accept those prices so long as Chinese offers remain low.