Mills’ record-breaking profits continue to climb, sources note, adding that sheet steel prices are climbing alongside them.
This week, SteelOrbis sources have confirmed that US HRC prices are “solidly at $90 cwt. and above,” adding that the new range is trending between $90-$94 cwt. ($1,984-$2,072/mt or $1,800-$1,880/nt), FOB mill, against a range of $88-$92 cwt. ($1,940-$2,028/mt or $1,760-$1,840/nt), FOB mill, a week ago.
US CRC prices have also inched up, from $98-$100 cwt. ($2,161-$2,205/mt or $1,960-$2,000/nt), FOB mill, a week ago, to $100-$102 cwt. ($2,205-$2,249/mt or $2,000-$2,040/nt), FOB mill, today.
Some sources, however, question whether the weekly upticks will be sustainable if mills succeed in taking scrap prices down during next month’s buy cycle. As SteelOrbis reported yesterday, most scrap players believe that prices are poised to soften by roughly $20/gt in August, due to lagging export activity and the fact that prices for recent cargo sales into Turkey from other sellers in the global market have been ticking downward.
Others, however, are staunch in their belief that no such sheet steel price correction is on the horizon, adding that they believe that prices will stay strong through the rest of 2021. “Spot market tons are still scarce, and buyer demand is at an all-time high,” a source noted. “Yes, supply and demand should level out at some point in the future, but I definitely don’t see that happening anytime soon.”