US HRC price increase falls short of expectations

Despite the effort of US flats mills to firm prices with a recent $1.00 cwt. ($22/mt or $20/nt) price increase, the result has fallen short of expectations. As with last week, that range continues to hold at approximately $32.00-$33.00 cwt. ($705-$727/mt to $640-$660/nt), with the smallest buyers still paying prices toward the top of that range, those who are inquiring about orders with significant tonnage are still able to negotiate deals as much as $2.00 cwt. ($44/mt or $40/nt) below that range. 

Concern that flats prices could decline further due to weakness in the US domestic scarp market is still prevalent, but a great many others cite optimism. “Order books are still pretty good and mills are enjoying decent margins,” according to one Texas-based source. “As long as the mills stay united and don’t try to pull the rug out from under one another, the market should hold mostly status quo through the rest of the year.”