While US flat rolled mills are close to achieving full acceptance for their last round of price increases, another pricing announcement is expected to be forthcoming as early as the end of this week as the cost for raw materials is once again on the rise.
Those on the purchasing end of hot rolled coils (HRC) and cold rolled coils (CRC) have done their fair share of teeth gritting in recent weeks, which is largely directed toward those holding the supplies of what mills need to produce steel. Furthermore, SteelOrbis anticipates that busheling scrap prices will increase $50/lt to $60/lt ($49/mt or $59/mt to $45/nt to $54/nt) compared to last month; which means that another flats increase of approximately $2.00 cwt. to $2.50 cwt. ($44/mt to $55/mt or $40/nt to $50/nt) is likely. Although most mill order books are still softer than they would like to admit publically, low inventories and the need to keep product in stock will help mills continue to succeed in passing on increases, at least for the next month or two.
Most domestic HRC spot prices have increased approximately $1.00 cwt. ($22/mt or $20/nt) since last week and now range from approximately $34.00 cwt. to $35.00 cwt. ($750/mt to $772/mt or $680/nt to $700/nt) ex-Midwest mills. Not surprisingly, the range in CRC spot prices has narrowed approximately $1.00 cwt. ($22/mt or $20/nt) since last week with most offers now being seen at approximately $39.00 cwt. to $40.00 cwt. ($860/mt to $882/mt or $780/nt to $800/nt) ex-Midwest mills. It should be said that it is highly probable that the low ranges for both HRC and CRC will no longer be available as early as the end of this week.
Looking offshore, imports are oddly quiet. As most foreign mills continue to wait for new US price increases to be announced, offers into the US previously seen have either been booked or expired. Basically, there are not many valid and/or competitive offers out there.
The only viable imports of HRC are from Mexico, but these have been moving up alongside domestic HRC spot prices. Mexican HRC offers have also increased approximately $1.00 cwt. ($22/mt or $20/nt) since our last report, and are now being seen at about $34.00 cwt. to $35.00 cwt. ($750/mt to $772/mt or $680/nt to $700/nt) delivered to the Border States.
License data from the US Steel Import Monitoring and Analysis System (SIMA) demonstrate that the total import tonnage of HRC has decreased slightly from 165,856 mt (census data) in February to 164,273 mt (license data) in March, with leading importer Canada having decreased imports from 54,026 mt in February to 44,562 mt in March. The only other significant importers of HRC in March were Australia, at 44,503 mt; Korea, at 29,846 mt; and Mexico, at 14,859 mt.
License data from the US Steel Import Monitoring and Analysis System (SIMA) demonstrate that the total import tonnage of CRC has decreased from 63,985 mt (census data) in February to 55,795 mt (license data) in March, with leading importer Canada having decreased imports from 19,624 mt in February to 14,948 mt in March.