Posted on 30 Jul 2019
US sheet mills are trying hard for elevated base price levels, and their efforts are finally starting to bear fruit, Kallanish hears from market sources.
US mills have announced three separate base price hikes this July of $40/short ton, or $120/st in total. The first increase was largely pooh-poohed by the industry at-large, while the second and third increases show signs of traction.
A source at one top-tier mill now puts hot-rolled quotes at $630-640/st, with cold-rolled being quoted at $800/st.
“Transactions moved last week to at least $600/st, as customers likely sent in their orders that they negotiated as part of the second increase,” he says. “So, prices keep moving higher, and lead times are out to as much as seven weeks on hot-rolled coil, and many mills are setting up ‘inquire’ on lead times.”
A Midwest buyer says there’s a “huge effort” underway to secure the original $40/st increase, and “...a lot of conversation about holding firm to get the second $40/st.”
The buyer gave his comments before confirmation of the third round of increases.
“Bottom line, only the [index] buyers and a few spot [buyers] that are filling newer orders are accepting some percentage of the total $80/st,” he says. “Same old, same old.”
Kallanish increased its hot-rolled assessment Monday to $580-600/st, with cold-rolled moving up to $750-770/st. All prices are ex-works, domestic mill.
