It’s been a little more than a week since US flats mills announced their most recent price increase, however, steel prices have yet to firm to mills’ desired amounts.
For example, although Cleveland Cliff’s is pushing for a new HRC base price of $42.50 cwt. ($937/mt or $850/nt), FOB mill, and NMLK is attempting to establish a new HRC base price of $43.75 cwt. ($965/mt or $875/nt), FOB mill, many HRC spot market transactions are still coming in at below $40 cwt. ($882/mt or $800/nt), FOB mill.
Most prices, however, are firming.
Current HRC prices are trending at $38-$40 cwt. ($838-$882/mt or $760-$800/nt), FOB mill, against a range of $37.00-$39.50 cwt. ($815-$871/mt or $740-$790/nt), FOB mill, a week ago. This is the first time US HRC prices have hit the $40 cwt. mark since September of last year. Sources have indicated that small-tonnage spot market price transactions are taking place up to $2.00 cwt. ($44/mt or $40/nt) above this range.
CRC prices are also up week-over-week and are now being heard at $49-$52 cwt. ($1,080-$1,146/mt or $980-$1,040/nt), FOB mill, against a range of $47.50-$50.50 cwt. ($1,047-$1,113/mt or $950-$1,010/nt), FOB mill, a week ago. SteelOrbis pricing data reflects that this is the first time CRC prices have hit the $52 cwt. mark since October 2022.
Domestic HDG prices, on the other hand, are “mostly neutral” and are still trending at $47.50-$50.50 cwt. ($1,047-$1,113/mt or $950-$1,010/nt), FOB mill.
Similar to what’s being seen with HRC prices, sources have also confirmed that small-tonnage CRC and HDG transaction prices are taking place above their average respective ranges.
And while lead times for HRC have widened by about a week, buyers still say they “can get their orders in 6 weeks or less, depending on the mill.” Sources continue to report a reluctance to “stock up” at these ranges out of concerns that this uptrend may be temporary. “Lead times are by no means impressive and the capacity utilization rate is still relatively low,” a source said. “I don’t see anyone rushing out to fill warehouses at these prices.”