US domestic flats prices to rise further after Thanksgiving holiday

With rumblings of a third price increase growing louder, US domestic flat product spot prices are likely to continue their uptrend this week. Sources tell SteelOrbis that there hasn't been enough activity this past week to really impact flat rolled spot prices, and last week's hot rolled coil (HRC) range of $30.00-$32.00 cwt. ($661-$705/mt or $600-$640/nt) ex-Midwest mill, and cold rolled coil (CRC) range of $35.00-$37.00 cwt. ($772-$816/mt or $700-$740/nt) ex-Midwest mill, still stands. However, spot prices are now trending toward the higher end, and could continue to climb if a third price increase is announced. Lead times continue to impede mills' progress in fully implementing their $4.50 cwt. ($99/mt or $90/nt) in announced price increases since mid-October--a few mills are still struggling to finally close out December order books.

If US domestic scrap prices do indeed continue to move up in December, as many predtic, then flat rolled prices will likely continue to do so as well. However, no major price surge is anticipated given more than adequate supply being prompted by a rising US steel production rate. As with last week, because the US domestic market's uptrend is still fragile, imports aren't attracting too much US buyer attention. Chinese mills raised their CRC offer prices to the US by $0.50 cwt. ($11/mt or $10/nt) and are intent on holding firm, although trader sources noted that prices could be flexible for a larger order.

*DDP loaded truck in US Gulf ports