Steel Products Prices North America
Letter to the Editor: Surprised at Early June Import License Levels
Written by John Packard
June 12, 2015
An executive with a large service center group penned us some thoughts about the market (prior to the SSAB plate price increase) on Wednesday of this past week.
“I was surprised at the June import-rate figures, with the forecast/possibility of 3+ million tons. It doesn’t seem like imports are falling as fast as expected for flat rolled and semi. Then, when considering the return of BF melt at USS and AM, along with many Minis moving back to 2 casters when they can, it seems like supply is staying above demand enough to prevent lead-times from moving out with greater momentum than we’ve seen. It’s also worth considering whether mills are running any tons ahead due to labor contracts, which expire in 11 weeks. If they are and there’s no interruption, it will reduce mill production requirements in the fall.
“Certainly not trying to be a naysayer, but looking at CRU prices today, and the fact that Platt’s hasn’t moved pricing levels in weeks, it certainly is static at the moment. I think with the mills being forced to pay up $20-30/ton for scrap based on supply levels in June, I’d be shocked if they can’t recoup that within the next 4 weeks. If they can’t, it’s a red flag for the immediate term as to whether a traditional input cost-push will lead to higher mill prices as well.
“One last note: Plate is awful; lead-time is 4 weeks and price is at lowest level in years. While the imports on plate look to falling nicely, existing stock will keep things upside down for a while….”
SMU Note: SSAB announced a $25 per ton plate price increase last week and Nucor, ArcelorMittal, NLMK USA and California Steel have all announced $20 per ton price increases on flat rolled products as of the end of this past week.
John Packard
Read more from John PackardLatest in Steel Products Prices North America
Nucor slows HRC price climb with $5/ton increase
After eight weeks of double-digit price increases on hot-rolled (HR) coil, Nucor slowed the price rise this week with an increase of $5 per short ton.
Domestic CRC prices surge ahead of imports
The price spread between stateside-produced CR and imports reached its widest margin in over a year.
Evraz raises plate prices $160/ton
Evraz North America (NA) has followed Nucor and SSAB with a plate price increase of its own: up $160 per short ton (st). The increase was effective immediately for all new orders of carbon, high-strength low-alloy, and normalized and quenched-and-tempered plate products, as well as for hot-rolled coil, the steelmaker said in a letter to […]
Nucor lifts HR coil to $820/ton
Nucor has increased its consumer spot price (CSP) for hot-rolled (HR) coil for a fourth consecutive week.
Nucor pushes HR spot price to $790/ton
Nucor increased its consumer spot price (CSP) for hot-rolled (HR) coil to $790 per short ton (st) on Monday, Feb. 10 – a $15/st bump vs. last week. The Charlotte, N.C.-based company has raised its weekly CSP by $40/st over the past three weeks after maintaining tags at $750/st since Nov. 12, according to SMU’s […]