The $40/st US sheet steel mill price increases announced last week have started to take hold, although buyers still do not feel prompted to make any purchases, sources said Thursday.
S&P Global Platts on Thursday raised its daily hot-rolled coil price assessment to $580-$600/st from $560-$580/st. Platts cold-rolled coil assessment also increased to $790-$810/st from $780-$800/st. Both assessments are normalized to an ex-works Midwest (Indiana) basis.
A service center source said all the domestic mills he deals with are quoting $600/st for HRC, and two mills quoted galvanized sheet at $820/st this week.
"My sense is they may deal off those slightly," the source said, although any discounts would not be sizable. "But I really think they have the near-term momentum."
One mill source said he's quoting $820/st for CRC and galvanized sheet. "I think the marketplace still has to accept those prices," he said. "Maybe some customers will still able to get a slight discount."
Some mills may be willing to negotiate a little because zinc coating extras have increased, the mill source said. "Probably about 70% of the market is looking at the full $820/st with no exceptions," he said.
The mill source and buy-side sources said they expect another price increase before the end of the year.
With the $40-$50/lt jump in steel scrap costs this month and high coking coal prices, mills are likely going to hold prices at current levels, if not higher, another service center source said.
Mills have generally been consistent in quoting $600/st for HRC and $820/st for CRC and galvanized sheet, although the service center said one mill quoted him below $800/st for a galvanized order. The service center source said he has not made any spot purchases this week though.
An Eastern service center source agreed that mills have been insistent on $600/st for spot HRC. Bookings with customers are already starting to slow, he said, and he does not plan to buy any spot material for the next few weeks.
