US flats market steady as import offers grow plentiful

Following weeks of quickly moving spot prices, the US domestic flat rolled market has remained unchanged in the last week. Last week's rumblings of a fourth price increase on flats prices have not entirely fallen silent, but buyers believe mills are being a bit more cautious, due to increased production coming online. AK Steel is back up and running following a mechanical failure a few weeks ago, while US Steel has said its Lake Erie Works should be "back in the game" within a month. Meanwhile, another mill in the south is also anticipated to have restocked slab inventory in August, and therefore also ready to reenter the market. Sources tell SteelOrbis this has contributed to a slight slowdown in buying activity this week, although mills haven't shown any signs of relinquishing price control.

Hot rolled coil (HRC) spot prices are unchanged at $31.50-$32.50 cwt. ($694-$716/mt or $630-$650/nt) ex-Midwest mill; but even larger buyers have been forced to pay the higher end of the range, particularly for quick deliveries, as lead times are already into late August. A stronger US domestic market has also resulted in increased offers from offshore. On HRC, both Mexican and Russian offer prices are unchanged from last week, although a number of orders were taken under the low end of both ranges earlier this month. Russia is also offering cold rolled coil (CRC), but at prices well below US domestic. The offer price of $32.50-$33.50 cwt. ($716-$739/mt or $650-$670/nt) DDP loaded truck in US Gulf ports has raised eyebrows, but the surprisingly low prices are largely to compete with Chinese prices that are only $0.50 cwt. ($11/mt or $10/nt) higher, according to trader sources.

*DDP loaded truck in US Gulf ports

**DDP loaded truck delivered into Houston