US flats market static again after minor uptick

Following a moderate firming trend a week ago, US domestic flat rolled spot prices have steadied once again. With scrap prices increasing significantly in the Midwest just days after flat rolled mills announced a $2.50 cwt. ($55/mt or $50/nt) price increase, hot rolled coil (HRC) and cold rolled coil (CRC) spot prices began to firm. However, in the past week, while mills have not been striking any major deals and are intent on keeping HRC prices on the high end of the current $30.00-$31.00 cwt. ($661-$683/mt or $600-$620/nt) ex-Midwest mill level, buyers continue to keep order entry to a minimum as they carefully watch the CRU and mill lead times--both of which remained just about flat in the past week. Further, with the possibility of the March gain in scrap prices partially reversing in April, flat rolled buyers aren't taking any chances with buying more material than meets their immediate requirements.

The main impediment to higher flat rolled spot prices appears to be a lack of upward momentum, which has quieted last week's rumblings of another imminent price increase--however, sources tell SteelOrbis that it wouldn't be out of the realm of possibility for mills to try for a second increase to push through a previous one. For the time being, prices are likely to hold steady until at least next week, although if order activity remains minimal, slightly discounted deals could once again crop up. Following weeks of rising prices, Chinese mills have finally started to lower offer prices to the US. Chinese cold rolled coil (CRC) sales prices in the US are down $0.50 cwt. ($11/mt or $10/nt) in the past week, although the decrease has not resulted in any renewed interested from US buyers.