US flats mills still aggressive as they try to fill June orders

Monday, 18 May 2009 03:01:03 (GMT+3)   |  
       

The domestic US flat rolled market continues to trend slightly down, as it appears that mills are aggressively looking to fill as many June orders as possible, positioning themselves up for a possible July price up-tick.

Despite demand levels still being much lower than is necessary for any price stabilization or up-tick, the recent busheling scrap strengthening and continued production cutbacks and major plant idlings, the most notable as of late being AK Steel's Ashland Works, have mills trying to book as many orders as possible through June, hoping to be able to attempt an increase, or to at least keep prices firm in July.

Nonetheless, any idea of a price increase may just be wishful thinking on the mills' part, as weak demand levels are not demonstrating any signs of improvement, especially as the automotive industry is stuck in a deep hole that just keeps getting bigger. GM announced Friday that it is laying off 1,100 of its estimated 6,000 dealerships across the country, in a string of efforts to cut back 40 percent of its retail costs.

Meanwhile, most domestic hot rolled coil (HRC) offers trended neutral over the past week and continue to range from $19.00 cwt. to $21.00 cwt ($419 /mt to $463 /mt or $380 /nt to $420 /nt) ex-mill in the Midwest. SteelOrbis has learned that some customers may be able to get mills to reduce offers slightly below this range on quick orders of significant tonnage; however, the window for buyers to receive significant discounts on most deals may be starting to close.

Similarly, most cold rolled coil (CRC) offers also trended neutral from last week and can be found for around $22.00 cwt. to $24.00 cwt. ($485 /mt to $529 /mt or $440 /nt to $480 /nt) ex-Midwest mills. While most hot dip galvanized (HDG) base price offers are also being quoted at around that same mentioned range, larger customers are probably able to persuade mills to provide offers for slightly below $22.00 cwt. ($485 /mt or $440 /nt) on significant orders.

On the import side, foreign HRC and CRC offers have been firming up in recent weeks, and while offers, at least on the HRC side, remain somewhat competitive, foreign mills are increasingly reluctant to offer special discounts for most circumstances.

While Mexico and Venezuela had been the dominant HRC exporters to the US over the past several weeks, both have been very quite over the past week, and even though offers have recently been seen at about $18.00 cwt. to $20.00 cwt. ($397 /mt to $441 /mt or $360 /nt to $400 /nt). Mexican offers are delivered to the US border crossing, while Venezuelan offers are duty-paid, FOB loaded truck in US Gulf ports.

Meanwhile, most CRC import buying activity in the US has been very quiet in recent weeks. US domestic mills have pushed CRC prices too low for most foreign mills to find value in following them downwards, and import mills have thus been increasingly reluctant to offer discounts, especially as their respective domestic markets have been faring much better recently compared to that of the US.

Nonetheless, Mexico still remains the main CRC importer to the US, with offers at approximately $23.00 cwt. to $25.00 cwt. ($507 /mt to $551 /mt or $460 /nt to $500 /nt) at the US border crossing. Argentinean offers also trended sideways, at $24.00 cwt. to $26.00 cwt. ($529 /mt to $573 /mt or $480 /nt to $520 /nt) duty-paid, FOB loaded truck in US Gulf ports, while Brazilian, Chinese and Indian offers are less competitive, at a range of $25.00 cwt. to $27.00 cwt. ($551 /mt to $595 /mt or $500 /nt to $540 /nt) duty-paid, FOB loaded truck in US Gulf ports. China's domestic market has been steadily improving over the past month and Indian mills have already filled orders through June and into July.


Similar articles

How will the US steel industry fare under the Biden administration?

09 Nov | Steel News

Turkish scrap up on Orbis Steel Index

15 Oct | Steel News

Turkish scrap rises on Orbis Steel Index

10 Oct | Steel News

Turkish scrap declines on Orbis Steel Index

01 Oct | Steel News

Scrap picks up on Orbis Steel Index

03 Sep | Steel News

Turkish scrap remains flat on Orbis Steel Index

28 Aug | Steel News

Scrap declines on Orbis Steel Index

06 Aug | Steel News

Turkish scrap remains almost flat on Orbis Steel Index

30 Jul | Steel News

Scrap continues to decrease on Orbis Steel Index

23 Jul | Steel News

Scrap declines on Orbis Steel Index

16 Jul | Steel News