US domestic flat rolled steel prices have continued their months-long uptrend, as sources close to SteelOrbis question when market prices will peak.
For example, HRC spot market prices have climbed to more than $50 cwt. ($1,102/mt or $1,000/nt) FOB mill, against $45-$48 cwt. ($992-$1,058/mt or $900-$960/nt) FOB mill a week ago. CRC prices are also up—and are now being heard in the range of $53-$56 cwt. ($1,168-$1,234/mt or $1,060-$1,120/nt), FOB mill, against a range of $52-$55 cwt. ($1,146-$1,213/mt or $1,040-$1,100/nt), FOB mill late last week.
And while capacity utilization rates are also up week-over-week, and are hovering at 73.2%, current production rates represent a 10.8% drop from the same reporting period last year.
“Production is down, and demand remains strong, and for now, the mills can essentially name any price they want,” a source said. “Scrap is expected to go up again next month, and until supply and demand levels back out, prices will continue to climb.”