Will US mills’ second HRC price increase push prices higher?

US domestic flat rolled steel mills, including ArcelorMittal USA (AMUSA), NMLK USA, AK Steel and Nucor Sheet Mill Group this week announced a second $1.50 cwt. ($33/mt or $30/nt) price increase.

This is the second $1.50 cwt. ($33/mt or $30/nt) price increase that flats mills have announced in the past 30 days.  And while the first increase announcement did not immediately succeed in pushing prices higher, the second price increase has helped firm US domestic hot rolled coil (HRC) spot market prices.

As such, US domestic spot market prices have firmed by $2.50 cwt. ($55/mt or $50/nt) since our last report a week ago, which brings the current average transaction range to $25-$26 cwt. $551-$573/mt or $500-$520/nt), ex-Midwest mill.

Many market players within the US domestic steel industry believe the results of this week’s Presidential election, in which Republican candidate Donald Trump was named the victor, will have a positive impact for the steel industry.

Trump’s “America First Energy Plan,” which involves increasing drilling projects for oil and natural gas, is expected to have a trickle-down effect throughout the industry in terms of increased demand for finished steel products, including US domestic HRC.