The US flat rolled steel market remained stable at mid-month, even as several sources told SteelOrbis that a general lack of availability at current prices for common gauges and grades was becoming a concern.
“The overall sentiment seems to be that of frustration,” one source told SteelOrbis early in the week. “Several of our sources have remained steady in terms of pricing, but they lack availability in the more common gauges. Others are inching up on what they do have available.”
This week’s average US domestic spot HRC price range is trending unchanged at roughly $40.50-$42.50 cwt. ($893-$937/mt or $810-$850/nt) FOB mill, with lead times steady at 3-7 weeks. Flat rolled prices seem to have “stabilized,” sources said.
And while mid-month demand was noted as “steady,” most contacts polled failed to report a sizable uptick in orders. “The lack of availability is driving prices up in the secondary market for the most common usage items it seems,” one source said.
Meanwhile, CRC and HDG spot market pricing remains flat to last week’s level at $55.00 cwt. ($1,213/mt or $1,100/nt) and $53.00 cwt. ($1,168/mt or $1,060/nt) FOB mill, respectively. Lead times for both are last heard at roughly 6-10 weeks.
Flat mid-month doldrums follow a “battle” of the mills earlier in April as higher priced HRC offers of $45 cwt. ($992/mt or $900/nt) from Cleveland Cliffs largely fell by the wayside, as market players reported the bulk of transactions at or below $42.50 cwt. ($937/mt or $850/nt), FOB mill.
On Monday of this week, Nucor rolled out its Consumer Spot Price (CSP) at $41.75 cwt. ($937/mt or $835/nt) FOB mill, marginally higher than the previous week’s $41.50 cwt. ($915/mt or $830/nt), FOB mill CSP level.
While talk of higher month-end HRC prices continues on occasional reports of scant supply leading up to planning for the May scrap buying cycle, any likelihood of sizable price increases for flat grades continues to be met with skepticism.
“I feel that HRC should have little sustainable upside, because demand just isn’t that great,” another source told SteelOrbis. “US prices are so far above the EU, Asia, India and Brazil, that any increase would just suck in imports.”
Sources tell SteelOrbis the most likely scenario for scrap next month (May) is going to be sideways. And while some people seem to think mills might try to take things down, few think many (sellers) are going to “bite on it.”