Speculation that US domestic HSS producers would once again raise prices was realized late last week, when mills announced a $3.00 cwt. ($66/mt or $60/nt) price increase. For now, the increase seems to be sticking, but sources are still questioning whether current price points are sustainable.
Today’s US domestic HSS spot prices are trending at $56-$57 cwt. ($1235-$1257/mt or $1120-$1140/nt), ex-mill. Sources in the Southeast say that once freight costs are factored in, prices are closer to $60 cwt. ($1323/mt or $1200/nt), delivered.
In contrast, prices during the first week of January were heard at $49 cwt. ($1080/mt or $980/nt), ex-mill.
“There’s been a major pushback because there’s a lot of uncertainty within the market and there are already signs that the market is at its peak,” a source said. “There’s no reason for anyone to run out and buy inventory right now.”
Another source pointed to one of his customers, who now needs to buy material for a job they bid four months ago.
“It’s really hard, because at this point, everyone needs to go back and explain that pricing is a lot higher than anyone could have anticipated when they bid those jobs,” he said.