Last week, Nucor Tubular Products, ExlTube and Bull Moose Tube all announced they’d be raising prices by $2.00 cwt. ($44/mt or $40/nt), effective immediately. Yet the big question at the time the announcement was rolled out was how successful the attempt would be.
At the time mills sent the notifications out, the most commonly heard spot market transaction price for US domestic HSS was hovering at approximately $40 cwt. ($882 or $800/nt) ex-mill, although transactions up to $1.00 cwt. ($22/mt or $20/nt) above that range had been reported. It’s also worth noting that deals slightly below $40 cwt. were said to be available on a “case-by-case basis.”
Although some deals remain at the $40 cwt. price point, others within the market have reported getting offers “at a solid $42-$43 cwt. ($926-$948/mt or $840-$860/nt), ex-mill. SteelOrbis sources have mixed options regarding whether the increase has sticking power. On one hand, US flats mills rolled out a second price increase announcement late last week, and many believe that US scrap prices will trend up slightly during the June buy cycle. On the other hand, finished steel demand remains hindered due to “commercial constipation” brought on by the coronavirus.
“It’s a wait and see at this point,” a source said. “The entire market is wait-and see, regardless as to what product you’re talking about.”