The US sheet market remained focused on firming prices ahead of bullish March scrap sentiment, with another round of increases anticipated after scrap settles, sources said Wednesday.
ArcelorMittal USA reasserted its price positions for March-April hot-rolled coil and April-early May cold-rolled coil and coated production. Minimum base prices were set at $640/st and $850/st for HRC and CRC, hot-dipped galvanized sheet, respectively.
The established prices differed from the $30/st price increases announced by Nucor, NLMK and AK Steel earlier in the week. However, new price levels from these producers were heard to be similar to ArcelorMittal's.
"There does seem to be a bit of an uptick in the market," a Midwest service center source said. Outside of the announced increases, another Midwest mini-mill had also started to quote slightly higher numbers, the source said.
Last week, he had been able to purchase some HRC at $600/st from another mini-mill but was informed the mill was now looking for higher numbers. However, he was unsure how much higher new prices would be.
There had been a temporary dip in HRC prices between two and three weeks ago, according to a buy-side source. However, the "dip came and went and not many people took advantage of it," he added. The increases this week have reestablished the price floor, and with March scrap expected to be up, the buyer believed there would be a second round to follow in March.
S&P Global Platts maintained its daily HRC and CRC assessments at $620-$630/st and $820-$840/st, respectively. Both prices are normalized to a Midwest (Indiana) ex-works basis.
Despite some skepticism in the market, there were no near-term indicators that prices would be put under pressure, according to the buyer. HRC imports were currently not a factor and the buyer expected it to remain that way as prices were not very competitive and buyers did not have much appetite for new imports.
HRC imports were heard to be available at $590-$610/st on a delivered duty paid basis into Houston for May shipments, one trader said. Offers at $570/st generated interest from buyers but current options were limited, leading him to raise prices depending on customer.
Platts raised its HRC import assessment to $550-$570/st from $530-$550/st on a CIF Houston basis, previously.
