US flat rolled market - Trend still up

Domestic pricing for flat rolled products is still steady, with a slightly upward trend. Prices for April orders of flat rolled products have improved with March scrap prices, rising $0.50 cwt., now ranging from $27.50 cwt. to $28.50 cwt. ($606 /mt to $628 /mt or $550 /nt to $570 /nt) for hot rolled, and from $32.00 cwt. to $33.00 cwt. ($705 /mt to $728 /mt or $640 /nt to $660 /nt) for cold rolled. The pricing trend for cold rolled coils is slightly hotter than the cold rolled trend because of an over-adjustment of inventories, an overhang of supply from when pricing was weaker and people were making very large purchases. Many have speculated that the new market trend is that the product that was weak a couple months ago is usually the one that is strongest now. Major flat rolled mills (AK Steel, WCI) have announced zinc surcharges for galvanized products, though Nucor is still evaluating its zinc extras. On the whole, galvanized prices have also improved $0.50 also, now ranging from $33.50 cwt. to $34.50 cwt. Below are sizes and grades for base prices: For hot rolled: 0.083" - 0.500" thick x 48" - 64" wide for grades C1006, C1008, C1010 For cold rolled: 0.0260" x 0.100" thick x 48" - 61.5" wide for grades C1006, C1008 Narrow and thinner materials and special grades pack extras. Though flat rolled prices have improved after dipping slightly last month, there is probably not much more room for broad price improvements past May. There had been some concerns about domestic supply, with the hairy labor situation at AK Steel's Middletown plant, and with rumors that US Steel's blast furnace startup is not going as well as planned, however, it is more likely that the rumors of supply shortages are just rumors, as US Steel is adamant that their blast furnace startup is going well. The Middletown workers are now officially locked out as of February 28, though AK Steel has announced that they will replace its Middletown workers with temporary employees to fill orders until a labor contract is reached. The truth is that domestic steel shipments, on the average, have been two million net tons per week, like clockwork, over past six months, even when the US Steel blast furnace was out and after Hurricane Katrina. The amount of 2 million - 2.1 million net tons per week will most likely remain steady. As far as import pricing, the trend is also up. The gap between import and domestic pricing is closing. Although the import markets have been weak over the last six months, particularly in Asia, they now have an improved market outlook in their home countries. With the European and Far East markets strengthening and raw material prices going up in those areas, the US market should go up as well. Right now, everyone is waiting to see what occurs with Mittal and Arcelor and what kind of stability that might also bring to the world market trend.