NEGOTIATOR’S TAKE: Steel prices are still under pricing pressure.
February 2016 – Pittsburgh
US hot-rolled coil prices remained under pressure earlier this month as buyers noted sub-$400/st spot availability from certain mills for larger volume buys.
Platts maintained its daily HRC assessment at $400-$420/st, as the lower prices heard were outside of the maximum lot size of 500 st to be considered in the daily assessment. Order sizes for the cheaper material ranged from 1,000 to above 2,500 st, according to buyers. Cold-rolled coil prices remained firm at $550-$570/st. Both prices are normalized to a Midwest (Indiana) ex-works basis.
One Midwest service center source said he was seeing HRC pricing steady right at $400/st and had recently shopped around an order to three separate mills and got offers between $400-$420/st. He said the order was slightly more specific but commodity-grade HRC was more consistent at $400/st.
The mills: “hungry”
“I think [the mills] are hungry … lead times are short from those minis,” at “less than a couple weeks,” he added. However, he was yet to see HRC available below $400/st…. Read the rest of this ProPurchaser sourced article, HERE.
Source: PLATTS [.com]
Article Author: Michael Fitzgerald [email@example.com]
Editor: Richard Rubin [firstname.lastname@example.org]