There was no denying the higher steel sheet prices by the end of this week, as market sources said Friday there was little spot tonnage available and mills were enforcing price increases on new orders.
Based on consistently higher quotes, Platts raised its daily HRC price assessment to $510-$530/st from $505-$520/st, and the CRC assessment increased to $690-$710/st, up from $680-$700/st Thursday. Both assessments are normalized to an ex-works Midwest (Indiana) basis.
Two mill sources said Friday they were avoiding quoting customers for June orders. "The tons are snapped up pretty fast," one mill source said. California Steel Industries sent a letter to customers Thursday, saying its July order book was closed.
The mill source said he sees HRC pricing "pushing" $520/st ex-works, and CRC and galvanized sheet substrate are about $700/st.
Mills are creating a "trendy night club illusion," according to one service center source, which involves making sure there's a line out the door "to make it look like you are so popular that people are unable to get in."
Most mills have some availability for galvanized sheet orders starting at $700/st, the service center source said, even though they're saying they are full. He said he sees spot pricing in the range of $680-$700/st for galvanized substrate and CRC.
Another service center source said $700/st is "on the low end," and he's heard pricing as high as $740-$750/st for late July and August delivery.
A third service center source said HRC pricing was in the range of $500-$520/st, though he has not solicited any quotes this week. "The price momentum is probably here to stay, I think through September," he said. The biggest risk though is the spread between HRC and galvanized sheet pricing. By September, HRC prices might not come down, but galvanized sheet prices could fall under import pressure, he said.
A trader said he saw domestic HRC pricing at $520-$540/st and CRC pricing at least $700/st. Prices have moved up internationally, and there is very little availability, especially for light-gauge coated material, he said.
