US import HDG prices jump up as expected

In our last report a week ago, SteelOrbis noted that while import HDG prices had remained stable, week-over-week, revised higher pricing was expected. The reason for the upward price momentum, sources said, was linked to upticks in raw materials costs, including scrap and iron ore, and “upside-down” supply and demand models. “There’s not enough capacity to meet demand,” a trader source said. “That’s the bottom line.”

Current revised pricing is listed in the chart below. Pricing for both products has increased by more than $20 cwt. ($441/mt or $400/nt) since mid-August 2020.