US domestic HRC spot prices continue to hold in the range of $34-$35 cwt. ($750-$772/mt or $680-$700/nt), ex-mill, although it’s largely speculated that pricing volatility in the global iron ore market will eventually push prices higher.
At current, SteelOrbis believes that prices, which have been unchanged in several weeks, will recover to a price point of approximately $35.50 cwt. ($783/mt or $710/nt), ex-mill, by the close of Q1. “Part of this will relate to the situation with iron ore, a second part of this relates to the fact that HRC prices experienced too much of a correction.”
“Higher iron ore prices will inevitably push scrap prices up,” a source said, citing a strong belief that HRC prices will continue to climb in Q2. “We think HRC could go up by $2.00-$3.00 cwt. ($44-$66/mt or $40-$60/nt), during the second quarter.”
On the other hand, if weather patterns in Australia such as cyclones hit the country before April, iron ore prices would skyrocket, which would push up global prices for steel products.
Domestic HRC producers continue to push for acceptance of the recent $2.00 cwt. ($44/mt or $40/nt) price increase, other sources said, although that attempt is being met by widespread resistance in the marketplace.