US flat rolled prices continue to move higher as lead times extend

A sudden jump in purchasing activity following late May-announced price increases from mills has allowed US domestic flat rolled spot prices to firm further. Mills are pushing for about $30.00 cwt. ($661/mt or $600/nt) ex-Midwest mill on hot rolled coil (HRC), and while spots haven’t reached those levels yet, HRC spot prices are up $1.00 cwt. ($22/mt or $20/nt) since last week to $29.00-$30.00 cwt. ($639-$661/mt or $580-$600/nt) ex-Midwest mill. Still, however, sources tell SteelOrbis that the sub-CRU deals are prevalent in the market, but less so than in the last couple months. Many buyers made purchases immediately after the announced increases, and the sudden restocking activity allowed HRC lead times to push out past June, with integrated mills reporting lead times well into July. 

 

Extending lead times, and a stronger than anticipated June scrap market could give mills the perfect opportunity to announce a second increase to keep the upward momentum from slowing, as it has with previous increases earlier this year. The possibility of a second increase to firm up the first has been predicted for over a week now, but whether those predictions come to fruition is not yet certain. For the time being, at least, prices have recovered from their recent bottom. Expectedly, Mexico is following the US domestic trend, and has raised its HRC offer prices $0.50 cwt. ($11/mt or $10/nt). Chinese cold rolled coil (CRC) import offer prices have held stable for a couple weeks, although traders are not confident the prices won’t drop further--at the very least, the rapid price slide has slowed. 

 

 

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