US flats prices stagnant after second round of price increases

Since our last report a week ago, a number of flats mills have announced $1.00 cwt. ($22/mt or $20/nt) price increases, the second announcement in the last few weeks, but the impact on US domestic spot prices has been minimal. ArcelorMittal USA was the first to begin informing customers of a $1.00 cwt. increase that would bring official hot rolled coil (HRC) prices to $36.00 cwt. ($794/mt or $720/nt) ex-Midwest mill. Nucor made a similar announcement just days later, followed swiftly by Severstal North America and RG Steel (RG announced a $1.25 cwt. [$28/mt or $25/nt] increase). The March increase has been ineffective thus far, and sources tell SteelOrbis that with HRC lead times as short as two weeks at some mills, the latest announcement was intended to be more of a market stabilizer, to prevent further declines, than anything else.

Both HRC and cold rolled coil (CRC) spot prices are stable from a week ago and only customers with comparatively small orders have been forced to pay $35.00 cwt. ($772/mt or $700/nt) ex-mill on HRC and $40.00 cwt. ($882/mt or $800/nt) ex-mill on CRC. With US scrap prices coming down about $10/lt this month after falling in March, there is little to give the increase much validity, and industry insiders are skeptical that the first set of increases will be absorbed, much less the second. As a result, import activity is still quiet. While trader sources indicate that inquiries have been steady, import offer prices have not moved in weeks, and remain largely in line with current US spot prices. 

	Cwt.	Metric Ton (mt)	Net ton (nt)	Change from last week
US domestic
HRC	$33.00-$35.00	$728-$772	$660-$700	neutral
CRC	$38.00-$40.00	$838-$882	$760-$800	neutral
China*
CRC	$39.50-$40.50	$871-$893	$790-$810	neutral
Mexico**
HRC	$33.00-$34.00	$728-$750	$660-$680	neutral
CRC	$38.50-$39.50	$849-$871	$770-$790	neutral
Russia*
HRC	$32.00-$33.00	$705-$728	$640-$660	neutral