US flats mills begin second round of increases

Ever since mills rolled out $2.00 cwt. ($44/mt or $40/nt) price increases in the beginning of July, the US domestic flat rolled market has anticipated a second announcement. And on Friday, AK Steel sent a letter to customers indicating that prices for all flat products would increase another $2.00 cwt. effective immediately. The increases have been expected for a couple weeks, but sources tell SteelOrbis that mills have been waiting for the opportune moment: US domestic scrap prices are poised to make a major gain next month and uncertainty over future supply on the heels of current labor negotiations at two major US steelmakers and the future of RG Steel is expected to convince even the most reluctant buyers to at least fill a few inventory holes or make hedge buys.

US domestic spots are likely to firm over the next few weeks, although how long prices will actually rise and then hold remains in doubt. For the time being, however, both hot rolled coil (HRC) and cold rolled coil (CRC) spot prices are steady from last week at $30.00-$31.00 cwt. ($661-$683/mt or $600-$620/nt) and $35.00-$36.00 cwt. ($772-$794/mt or $700-$720/nt), respectively, both ex-Midwest mill. Import activity, meanwhile, has been dull according to trader sources, although some import offers have become more aggressive in the last couple weeks. Chinese offers have fallen $1.00 cwt. ($22/mt or $20/nt) since last week  and Mexican mills have been heard cutting a few deals below the official price range of $34.00-$35.00 cwt. ($750-$772/mt or $680-$700/nt) DDP loaded truck delivered into Houston.

**DDP loaded truck delivered into Houston