Currently, most domestic HRC offers have remained stable since our report last week and continue to range from approximately $31.00 cwt. to $32.00 cwt. ($683/mt to $705/mt or $620/nt to $640/nt), ex-Midwest mills. However, the HRC market continues to be the strongest flat rolled market, supported by the strengthening pipe and tube markets. As a result, HRC spot prices are trending up and buyers may have a difficult time finding offers under $32.00 cwt. ($705/mt or $640/nt) by the end of next week.
CRC spot prices have also remained mostly the same from last week, with most domestic offers still ranging between $36.00 cwt. to $37.00 cwt. ($794/mt to $816/mt or $720/nt to $740/nt ) ex-Midwest mills. And while CRC spot prices are also expected to climb, they will not do so at the same pace as HRC.
After AK Steel's price increase it is widely anticipated that the other major players will soon follow, although Nucor is likely to wait in the wings until the recent scrap price increases begin to settle. Busheling prices will probably register a stronger increase than just $40 /nt ($2.00 cwt. or $44/mt) and it's possible Nucor may very well top AK Steel's updated pricing.
The big question on everyone's mind, though, is how long a supply driven market can continue to charge a premium in a low-demand atmosphere. This; coupled with the consistent keeping of skeleton inventory levels and the fact that customers purchasing solely on an absolutely-need-to-buy basis, distributors worry that the ever-growing pricing bubble will eventually pop.
In terms of imports, HRC and CRC offers have remained relatively quiet. Mexico continues to be a minor factor offering HRC at about $32.50 cwt. to $33.50 cwt. ($717/mt to $739/mt or $650/nt to $670/nt) delivered to customers in Houston, but that's about it. Russia and Turkey, who had previously had their hands in the import market, have shifted their focus to their own domestic need. There are still some CRC offers out of China, at about $39.00 cwt. ($860/mt or $780/nt) duty-paid FOB US gulf ports and above, but with the ongoing volatility in the US domestic market, overseas offers are failing to garner much interest.
Item |
US Domestic Spot Price |
From Last Week |
From Last Month |
Pricing Trend |
Comments |
|
$31.50 cwt. ($694/mt) |
No change |
Up $1.50 cwt. ($33/mt) |
J |
ex-mill Midwest |
||
$36.50 cwt. ($805/mt) |
No change |
Up $1.00 cwt. ($22/mt) |
J |
ex-mill Midwest |
||