US domestic HRC prices have inched up slightly since our last report a week ago, from an average of $25 cwt. ($551/mt or $500/nt) to an average of $25-$26 cwt. ($551-$573/mt or $500-$520/nt), ex-mill.
The reason for the uptick, sources note, is that buyers were quick to book tons as soon as they thought the market had bottomed. Those buying patterns increased lead times which, in turn, has helped mills enforce some of their desired increase.
“But it is not a sign of strength, not a rebound in activity,” a source said. “It is just that they may as well buy now while prices are insanely low.”
Other market sources say that buyers who have not yet booked tons are likely to do so soon, in advance of further pricing upticks. An additional wave of activity could come before the end of the month, especially in that it’s believed that scrap prices are likely to firm, once again, in December.