Heat Treat Industry News
May 21, 2008
Flat-Rolled Steel Prices Increase in US Market, but Pace Slows
Flat-rolled steel prices continued to gain Tuesday in the US market for product from domestic mills.
The magnitude of the increases -- up by $20-25/st -- appears to be lessening compared with price gains earlier this year. What is more, US mills are quoting a fairly wide range of price offers for bookings in late June, July and even August.
The prices range from $1,060/st ex-works for hot-rolled coil from ArcelorMittal USA for July-August delivery, to $1,125/st ex-works from smaller producers such as AK Steel, WCI Steel and Wheeling-Pittsburgh.
Other mills fall somewhere in between, according to either their own announcements or reports from buyers. These include Nucor, which is offering HRC at about $1,090/st ex-works for July; Steel Dynamics, which is said to be quoting the same product at $1,090/st ex-works for any remaining June tonnage; and $1,080/st ex-works from US Steel.
As a result and based on reported transactions, the Platts price assessments increased Tuesday to a midpoint of $1,050/st for HRC and to $1,135/st for CRC, both ex-works Indiana.
Some buyers are starting to wonder if the mills offering July HRC at $1,125/st ex-works, might show some flexibility given the fact that other producers are as much as $65/st below such a price. "It's too early to say," one Chicago-area buyer told Platts. "They certainly have not backed off yet. It all depends how many tons are available in July. If the market remains tight, I doubt they will back off from $56.25/CWT ($1,125/st, ex-works)."
With weekly US raw steel production running steadily at about 2.15 million st, ArcelorMittal USA is cited as the key factor in the supply-side picture. Until its most recent spot-price announcement, it had primarily confined its shipments to the contract market. "Mittal does have what I would consider spot tonnage," noted a Midwest buyer. "But it's not a full range of product, only limited sizes and grades."
New York (Platts)--20May2008--Joe Innace, joseph_innace@platts.com
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