Spot market prices for US domestic HRC and CRC have continued to firm, sources note, adding that the anticipation of higher scrap prices in June is likely to push sheet steel prices even higher. As noted in yesterday’s scrap report, it’s widely held that US scrap prices will firm by roughly $50/gt, if not more, during next month’s buy cycle. Scrap is expected to start trading on Tuesday, June 1, after workers return from the Memorial Day holiday.
“If scrap jumps up like that you can bet that the [sheet] mills will try to push flat rolled prices higher,” a source commented. “This is at the point where it’s getting out of hand.”
This week, US HRC spot market prices have climbed to a new historical high of $78-$80 cwt. ($1,720-$1,764/mt or $1,560-$1,600/nt), FOB mill, against a range of $77-$79 cwt. ($1,698-$1,742/mt or $1,540-$1,580/nt), FOB mill, a week ago. Some sources close to SteelOrbis have noted they’ve received quotes “slightly above” the average range.
CRC spot market have also inched up since our last report a week ago and are now being heard at $88-$90 cwt. ($1,940-$1,984/mt or $1,760-$1,800/nt), FOB mill, against a range of $87-$89 cwt. ($1,918-$1,962/mt or $1,740-$1,780/nt), FOB mill, a week ago.
The reason behind the continued upticks parallels what’s been reported in recent weeks: demand is robust, import tonnages are scarce, and domestic spot market tons remain limited.