US flat rolled steel prices have continued to rise since our last report a week ago, and while some question whether pending capacity improvements will place downward pressure on pricing, others believe this uptrend “still has some legs to it.”
“What we’re seeing is wild, and we’re also seeing some increased interest in booking offshore, even with the [Section 232] tariffs,” a source said. “Domestic pricing is obnoxious, and the big question is ‘how obnoxious do the mills want to be.’ With every order we book we get more nervous with what’s going on, especially considering that JSW [Mingo Junction] started melting last week, the NMLK strike coming to an end, plus other capacity that’s coming online—that’s what’s right in front of us for the time being. It’s concerning.”
Other sources believe that current prices will sustain a bit longer.
“No one is saying that prices aren’t going to come down, but I don’t think it’s going to happen in the short-term,” another source said. “There are some planned mill outages coming up and at this point the mills seem to be strategic about restricting supply amidst an already-hot market. We’re still dealing with a supply crunch, customers are having a hard time getting their hands on tons, and there’s a lot of pent-up demand, which I think will help keep things firm for a few more months.”
Current US HRC prices are now being heard in the range of $63-$64 cwt. ($1,389-$1,411/mt or $1,260-$1,280/nt), FOB mill, against a range of $60-$64 cwt. ($1,323-$1,411/mt or $1,200-$1,280/nt), FOB mill, a week ago.
CRC prices are also up week-over-week. As of today, US domestic CRC prices are being heard in the range of $73-$74 cwt. ($1,609-$1,631/mt or $1,460-$1,480/nt), FOB mill, against a range of $70-$74 cwt. ($1,543-$1,631/mt or $1,400-$1,480/nt), FOB mill, a week ago.