The most commonly reported spot price transaction range for US domestic hot rolled coil has held steady since our last report a week ago, at $18.50-$19.00 cwt. ($407-$419/mt or $370-$380/nt), ex-Midwest mill, but an increasing number of transactions have started to take place at the top end of that range. “The $18.50s are just about gone,” one source said, citing belief that the market could see additional firming by the end of next week.
Considering that January scrap prices have settled up between $20.32-$25.40/mt ($20-$25/gt) in most regions of the US, based on the cut and grade, the theory that flats prices will continue to firm is more than reasonable. It’s further speculated that flats mills will soon announce a second price increase, which many feel will help push market prices upward. “Do we the December and possibly January price increases will take hold? No. But a second price increase is likely to force the first one into acceptance,” one source said.