Last week, SteelOrbis reported that US domestic HRC prices were trending in the range of $28.00-$29.00 cwt. ($617-$639/mt or $560-$580/nt) ex-mill; this week, prices have firmed by $1.00 cwt. ($22/mt or $20/nt), to $29.00-$30.00 cwt. ($639-$661/mt or $580-$600/nt), ex-mill.
Sources note the uptick was due to residual firming from the December price increase announcements, which have yet to be fully accepted. The residual firming was reportedly happening before flats mills announced yet another $1.50 cwt. ($33/mt or $30/nt) increase on Wednesday. This week’s increase seemed to be in line with higher scrap prices this month, another source said, adding that there are still a lot of questions about whether the new increase will take hold.
“Market fundamentals aren’t great,” a source said. “Things aren’t so bad that HRC should have fallen below $24.00 cwt. ($529/mt or $480/nt) last summer, but they aren’t so hot that any mill should be whispering a desire to push prices up to $32.00 cwt. ($705/mt or $640/nt), much less trying to send up trial balloons.”