Despite the Manufacturer's Effective Price Hikes, US Hot Rolled Coil Prices Remain Stagnant

New Delhi: This week, Hot Rolled Coil spot prices in the US market mainly remained stable after several major mills received the majority of their first price increase. Hot Rolled Coil prices maintained most of their previous week's gains when steel mills pushed prices up by USD 66/MT and firmly set higher prices. According to market participants, steel mills were holding firm on their offers, with no low prices reported. However, the domestic US Hot Rolled Coil Midwest assessment fell by USD 3/MT to USD 745/MT.

According to our sources, integrated steelmaker Cleveland-Cliffs raised flat-rolled product prices by approximately USD 55/MT on Tuesday. They set a minimum Hot Rolled Coil price level of USD 824/MT. Prior to this week, on November 28, the company announced an increase in the flat-rolled price of USD 66/MT but did not specify a minimum cost. In addition, four other steel producers in North America followed suit. Market players reported that the company's higher prices are effective immediately on all new orders.

Major manufacturers claim that ferrous scrap prices grew in December 2022, exceeding expectations and putting cost pressure on US steel manufacturers. The spread between scrap delivered to US Midwest mills and Hot Rolled Coil fell 7.5% and was fixed at USD 401/MT, reflecting the increase in scrap prices. According to sources, market participants still expect another price upsurge on flat products before the Christmas holiday, though only some expected it so soon. Overall, demand in the US for Hot Rolled Coil has remained relatively stable.

Thus, ChemAnalyst anticipates that Hot Rolled Coil prices will remain relatively stable in the coming weeks despite price increases by significant manufacturers and rising raw material costs. However, US market participants are still negotiating Hot Rolled Coil prices with major manufacturers for discounts, which has resulted in lower purchasing activity. The market is still struggling to accept the most recent price increases. The Hot Rolled Coil market is expected to slow significantly during the Christmas and New Year's holidays.