US flat rolled market remains at a standstill

Although over a week has passed since mills started to announce a third round of price increases, US domestic flat rolled spot prices have remained stagnant. While the $1.00 cwt. ($22/mt or $20/nt) price increase prevented spot prices from slipping backward, it has done little else. US mills and buyers remain in a standoff, with customers keeping order entry to a minimum, and only making purchases when needed. Sources tell SteelOrbis that mills' target price on spot hot rolled coil (HRC) transactions remains about $33.00 cwt. ($728/mt or $660/nt) ex-Midwest mill, but actual spot prices remain unchanged in the last week--and since just before Thanksgiving--in the range of $30.00-$32.00 cwt. ($661-$705/mt or $600-$640/nt) ex-Midwest mill.

While there have been some rumblings that spot prices could slip before the New Year if buyers aren't confident enough to place more than just fill-in orders, sources told SteelOrbis with early anticipation of a scrap uptrend in January, mills won't easily let prices fall. However, the occasional deal could be made to fill order books. As for imports, Chinese mills' price increases have yet to gain acceptance in the market, as US buyers are already finding previous price levels of $35.00-$36.00 cwt. ($772-$794/mt or $700-$720/nt) DDP loaded truck in US Gulf ports to be too high. Chinese CRC offer prices are about $34.00 cwt. ($750/mt or $680/nt) DDP loaded in US West Coast ports, where they're gaining some traction, but demand is especially weak on the West Coast, and import activity in the area remains tepid as well.

*DDP loaded truck in US Gulf ports

**DDP loaded truck delivered into Houston