US flats market staves off rumors as prices hold firm

US domestic flat rolled spot prices have held steady to slightly up in the last couple weeks, and that trend isn't showing any immediate signs of letting up. It's difficult to discern whether the current quiet in the market is a result of a slowdown in demand or simply the typical lull in activity that generally defines the steel market in mid-summer. The last couple weeks do appear to have been especially quiet, but that doesn't mean mills have resorted to cutting prices. In general, demand levels are stable, and mills have been heard enforcing higher prices with all new orders, even on above-average sized orders.

Customers are still not willing to make hedge buys, skeptical that the current price strength will sustain through the fall. A static market makes customers nervous, according to SteelOrbis sources, and that nervousness often translates to placing fewer or smaller orders. If mills are unable to fill their order books as well as they'd like, activity under the spot range could begin to crop up. But for the time being, domestic spots are stable, and appear poised to stay that way for at least another couple weeks. Expectedly, short-term stability is not enough to convince US buyers to look offshore. A few tons for hot rolled coil (HRC) and cold rolled coil (CRC) have been placed with the plethora of offshore mills offering, but if anything, traders say import activity has actually slowed.

*DDP loaded truck in US Gulf ports

**DDP loaded truck delivered into Houston