US domestic flat rolled spot prices continue to climb higher

While most US domestic mills have not officially followed the third round of flat rolled price increases started by Severstal North America last month--for$1.50 cwt. ($33/mt or $30/nt)--sources tell SteelOrbis that other mills have been quoting higher prices in the last week. Domestic spot prices have not caught up to asking prices, currently around $37.50 cwt. ($827/mt or $750/nt) for hot rolled coil (HRC) and $42.50 cwt. ($937/mt or $850/nt) for cold rolled coil (CRC), but have increased by about $1.00 cwt. ($22/mt or $20/nt) on the high end (see below chart). Spot prices are expected to continue trending higher for the rest of the month, as demand has been slowly improving, and mills have quickly pulling lower, unconfirmed, offer prices off the table.

Severstal North America also kicked off a fourth round of price hikes Friday, for another $1.50 cwt. ($33/mt or $30/nt), although initial response from US buyers is that the increase may be "one too many," if scrap prices don't make much of a move next month and demand doesn't continue to pick up. With uncertainty regarding domestic spot price sustainability still prevailing, most US buyers are not interested in offshore material now slated for late April/early May delivery. According to trader sources, US buyers are looking for a price difference of at least $5.00 cwt. ($110/mt or $100/nt) between US domestic and import prices to even consider booking an offshore order.