US domestic HRC market trends quiet amidst holiday week

A little over a week ago, SSAB tried to roll out an "effective immediately" $1.50 cwt. ($33/mt or $30/nt) price increase on hot rolled coil, but whether it actually gains any traction has yet to be seen. On the other hand, sources close to SteelOrbis point out that this may not be about "pushing the market higher" as it is bring prices in the South back on par with levels seen in the Midwest, which are still transacting in the approximate range of $33.00-$34.00 cwt. ($727-$750/mt or $660-$680/nt) ex-Midwest mill. 

"There have been a lot of deals taking place between $10-$20/nt cheaper in the South," according to one service center source, who believes SSAB may simply be trying to regain lost ground. In terms of overall market activity, things were relatively quiet last week as many took off several days early as a means of extending their Labor Day holiday weekend festivities. Offshore offer prices have held steady with levels seen one week ago, although traders have said they have slowed down on their bookings as they don't want to have hefty tonnages arriving before the start of 2015, which would leave them vulnerable to paying an end-of-year inventory tax.