US domestic flats market hangs on for another week

While mills have been heard making a few deals to fill order books, US domestic flat rolled spot prices have remained stable again in the past week. Expectedly, the holiday week and many taking extended vacations has kept buying activity to a minimum as most are waiting for a clearer picture in January before committing to any major purchases. Sources indicated that should scrap prices register a significant upward move in January, flats mills could very well try for another price increase, but otherwise, “they have plenty of increases they haven’t collected yet.” But even though there is a possibility that prices could rise early next year, there is little hedge buying taking place as some mills are still offering deals, as needed, to prevent lead times from shrinking.

Some mills’ lead times are currently as short as about two to three weeks, which is keeping hot rolled coil (HRC) spot prices stagnant at $30.00-$32.00 cwt. ($661-$705/mt or $600-$640/nt) ex-Midwest mill, with the majority of transactions taking place toward the higher end of the range. Import activity, meanwhile, is also lethargic as traders indicated that HRC or cold rolled coil (CRC) import offers are a tough sell right now, with no real clarity as to what direction US domestic spot prices will go in the New Year.