Last week, SteelOrbis reported that domestic flat rolled steel mills, including ArcelorMittal USA week announced a second $1.50 cwt. ($33/mt or $30/nt) price increase. This week, mills announced a third price increase, noting they planned to raise prices between $1.50-$2.00 cwt. ($33-$44/mt or $30-$40/nt).
The flurry of increase announcements was led by ArcelorMittal USA (AMUSA), which set new, minimum base prices for all flat rolled steel products, including US domestic hot rolled coil (HRC). AMUSA’s new minimum base price for US HRC was set at $28.00 cwt. ($617/mt or $540/nt).
SteelOrbis sources have since reported these price increases are helping to push spot market prices higher. As such, US spot market prices have firmed by $1.00-$2.00 cwt. ($22-$44/mt or $20-$40/nt) since our last report a week ago. Today, the average spot market price transaction range is trending at $26-$28 cwt. ($573-$617/mt or $520-$560/nt), ex-Midwest mill.
Lead times, which had been trending at or below four weeks in late-September have also firmed slightly. Some SteelOrbis sources say that current ex-mill lead times are “mostly in the three to five-week range.”
It is further believed that US HRC prices have not yet peaked, and that spot market prices will continue to tick upward in the near future.