US flat rolled steel prices a “mixed bag” in the first week of February

Last week, after a months-long uptrend, US domestic HRC and CRC prices finally leveled. At that point, sources noted a strong belief that prices had peaked. And while last week’s price range is still valid, the spot market price range was “in flux” for most of the week.
For example, on Tuesday, SteelOrbis sources said that the spot market price range for HRC and CRC had narrowed by $2.50 cwt. ($55/mt or $50/nt) on the top end, saying that it appeared that the “absolutely obscene” price quotes had disappeared.  Yet by the end of the week, the range widened by $2.50 cwt. on the top end, which puts this week’s range on par with what was reported last week.
"Scrap may have softened a bit, but there seems to be some renewed activity out of the energy pipe sector, which is helping things," a source said.
As such, domestic HRC prices are still trending in the range of $54-$60 cwt. ($1,191-$1,323/mt or $1,080-$1,200/nt), FOB mill, whereas US CRC spot market prices are still being heard in the range of $65-$70 cwt. ($1,433-$1,543/mt or $1,300-$1,400/nt), FOB mill.  Lead times for HRC are trending at 6-8 weeks, whereas lead times for CRC are bring heard at 7-9 weeks.
“We’re seeing some resistance to pricing, and we’re getting more offers from offshore,” one service center source said. “People seem to be more worried about price as opposed to availability, which is what we saw before.”
Another source said that despite buyers’ push back, inventories “aren’t up to snuff just yet. I think inventories are still low, and there’s still a sense that if you need spot tons, you’re going to pay through the nose for them.”