Tube mills have wasted no time in capitalizing on recent spikes in US domestic HRC pricing, and sources note that mills have succeeded in pushing prices up substantially since the first week of October. Current price points, sources note, are trending at $47.50-$48.50 cwt. ($1,047-$1,069/mt or $950-$970/nt), FOB mill, against $36.50 cwt. ($805/mt or $730/nt) on August 26, before the HRC price rally began.
“Prices are up about $12 cwt. ($265/mt or $240/nt) since all of this started” a source said, adding that based on the fact that HRC pricing remains strong, and that US scrap prices are expected to hold stable, if not trend upward during the November buy cycle, “we wouldn’t be at all surprised to see another increase rolled out sooner than later.”
As far as demand, another source said it’s steady, “but I definitely wouldn’t call it robust. Everything we’re seeing happen with pricing right now is directly tied to what’s going on with hot rolled [coil],” he said. “We were fortunate to buy a lot of material at the bottom of the market and we’re making some pretty good margins because of it.”