October 11, 2008

US HR prices up by another USD 20 to USD 975 per short ton

Platts reported that with most domestic mills now booking June spot orders, hot rolled coil prices climbed higher. The price widened more at its upper end to USD 990 per short tons, putting the current range at USD 960 to USD 990 per short tons or a midpoint of USD 975 per short tons ex works Indiana, based on reported deals.

A commercial executive at one mill told Platts that as such, HRC inched closer to USD 1,000 per short ton. I never thought we'd see thousand dollar hot rolled coil. But I am framing that first invoice as soon as it comes in." According to a variety of buying sources surveyed by Platts Most US mills are offering at or close to that level.

Steel Dynamics Inc based in Fort Wayne Indiana, came out late in the month with its May pricing of HRC at USD 960 per short tons, but reports from customers now indicate that much of that tonnage is gone. Kentucky based Gallatin Steel has yet to announce its pricing for either May or June.

Other mills, such as Ohio based AK Steel and WCI Steel, which announced immediate May spot market pricing of USD 990 to USD 1,000 per short tons are now telling customers there is very little material available for May.

For the most part, lead times for HRC are seven to eight weeks and stretching into June. According to a number of customers, depending on mill, tonnage, dimensions and other specifications, some key mill spot market offers for June include: Nucor, from USD 990 to USD 1,020 per short tons; US Steel at USD 1,020 per short tons; WCI at USD 1,000 to USD 1,020 per short tons; Wheeling Pittsburgh at USD 990 to USD 1,000 per short tons and AK Steel at USD 1,000 to USD 1,020 per short tons.