The US flat rolled steel market continued to trend higher this week, spurred by renewed service center buying interest following limited flats purchases leading up to the April scrap buy cycle, sources told SteelOrbis.
Last week’s prediction that US flats prices were “at or near the bottom” proved largely true as prices have once again started trending higher, with lead times flat to slightly extended throughout the week.
One flat rolled steel supplier concerned with limited availability said, “Everyone clamoring to buy what they can, driving prices up.”
US HRC prices are now assessed $3.00 cwt higher ($66/mt or $60/nt) from the previous week’s $1.00 cwt. gain, now at $40.50-$42.50 cwt. ($893-$937/mt or $810-$850/nt) from $37.50-$39.50 cwt. ($827-$871/mt or $750-$790/nt), FOB mill last week. Sources say smaller-sized transactions are continuing to command slightly higher prices within the marketplace.
CRC and HDG grades also trended up this week, following HRC prices with a $3.00/cwt increase to $54-$57 cwt ($1,191-$1,257/mt or $1,080-$1,140/nt), up from the prior week’s $51-$54 cwt. ($1,124-$1,191/mt or $1,020-$1,080/nt), FOB mill.
Sources say lead times for HRC are trending at 4-5 weeks, unchanged from last week, while HDG pricing and lead times are being heard “all over the place,” with lead times currently at 8 weeks, up from a previous 7-8 weeks duration.
While US flat steel prices have been on the rise for two weeks, some sources caution that uninspiring demand and returning mill production later this year could be setting up a buyer’s market.
“We may not see any significant price increase until the end of May or June, so we may linger at these levels for a while, and I believe that summer could be a buyer’s market,” one source said.
Still, following recent mill price increases, some sellers could be hard-pressed to concede on lower-priced offers, especially considering US scrap prices trended sideways this month. Last week, Cleveland Cliffs indicated its intention to raise HRC base pricing for the second time to $45 cwt. ($992/mt or $900/nt).
Sources said this likely was “one of those situations where mills announce a second increase to force the first one into acceptance,” referencing Cliffs’ mid-March announcement of a new HRC base price of $42 cwt. ($926/mt or $840/nt), FOB mill.