US Steelmakers Lifted Hot Rolled Coil Prices on Tight Supply

Posted on 07 October 2020

U.S. hot-rolled coil (HRC) spot prices saw significant surge, as many steelmakers increased the prices citing tight market supply, due to higher demand. The steelmakers who announced price hikes recently include Algoma, ArcelorMittal USA, NLMK USA and Nucor.

Algoma announced hike in HRC prices by C$60 per short ton. ArcelorMittal’s Dofasco mill too has increased pricing for all flat-rolled products by C$65 per short ton. Meantime, the ArcelorMittal USA has already informed its customers that price for spot orders of flat-rolled products will be $650 per short ton for HRC and $850 per short ton for CRC. Also, NLMK increased the prices to match with the levels announced by ArcelorMittal.

The minimum price of $650 per short ton by ArcelorMittal and NLMK would translate to 44% surge in prices, compared with the yearly low of $450 per short ton during the second week of August this year.

As per market sources, lead times continue to remain in the range of 8-9 weeks. Major steelmakers have been reporting low levels of HRC availability at mills for the upcoming month. The tight supply situation, coupled with scheduled mill outages, is likely to provide good support to prices during the remainder of the year, they said.

Source : Scrap Monster