The average spot market price range for US domestic HRC, CRC and HDG coil are steady since our last report a week ago, as sources continue to report that last week’s ranges “capture about 99% of transactions.”
Consequently, US domestic HRC prices are still being heard at roughly $35-$37 cwt. ($772-$816/mt or $700-$740/nt), FOB mill, whereas US CRC and HDG coil spot market prices are still trending at $45.50-$47.50 cwt. ($1,003-$1,047/mt or $910-$950/nt), FOB mill, and $46-$49 cwt. ($1,014-$1,080/mt or $920-$980/nt), FOB mill, respectively.
The question as to whether US sheet steel prices will remain in these ranges, or whether they’ll continue to firm after mills announced their third in the current series of price increases, has yet to be known.
Earlier this week, Nucor, ArcelorMittal/Nippon Steel, and Cleveland Cliffs told customers they’d be raising prices on all sheet steel products by $2.50 cwt. ($55/mt or $50/nt), effective with all new orders.
Cleveland Cliffs has indicated a desire to put their new minimum HRC spot market price to $40 cwt. ($882/mt or $800/nt), FOB mill.
“Everyone is trying to figure out if this upturn is real,” a source said. “No one is in any rush to do anything.”
Similar to previous reporting, sources continue to indicate a wariness to stock up amidst the current uptrend because one, lead times are “still fairly short” and two, there’s still widespread concern that the uptrend might not last.
“I don’t know if $40 cwt. is the new viable floor for hot rolled,” another source added. “I think that +/- $35 cwt. is a lot more likely, and that’s basically where we are now.”
In terms of import prices, traders have said that lots of offshore mills aren’t quoting which “makes it difficult to answer the pricing question.”
“I don’t know if we have import HRC offers from anywhere outside of Mexico, and those offers are in the $35-$36 cwt. ($772-$794/mt or $700-$720/nt), FOB Houston range,” a final source added.
“Import cold rolled offers are higher than domestic offers, so if you’re in the camp of people that believe that this market will continue to go up, you’d buy now to protect yourself. If you think that the [US] market could change, you don’t touch import with a 10-foot pole. We’re seeing a lot of the latter.”