The most commonly reported spot market price transaction range for US domestic Grade A ERW BPE standard pipe may be trending neutral at $47-$49 cwt. ($1036-$1080/mt or $940-$980/nt), ex-mill, but sources close to SteelOrbis have indicated that “year-end-deals” at the service center level are becoming increasingly prevalent.
“We’re into that time of year,” a source said. “Everyone is winding down in advance of the holidays.”
And while current demand and prices have trended flat week-over-week, there is growing speculation that US domestic flat rolled steel prices, including HRC, could spike after the new year due to a forecast uptick in order placement (which will be tied to depleted inventories) and a forecast dip in import arrivals, as many flat rolled steel customers backed away from booking offshore in Q3, due to the inversion of domestic and offshore prices.
Some believe that flats mills could “have a run on prices that lasts anywhere from three to four months,” another source said. “If hot rolled jumps up you can bet that standard pipe prices will follow.”