16 Apr 2014 WASHINGTON (Scrap Monster): The US hot rolled market continues to remain firm, says market sources. According to reports, the US domestic HRC makers have increased product prices up to $22 per ton. The price hike is in effect immediately for all new orders.
The domestic HRC prices currently are at $728 per ton ex-works basis. Market participants indicate that local buying activity has slowed down following the recent hikes in prices as they believe that the high prices does not support the current market demand. Moreover, the HRC from Mexican suppliers are priced at a lesser rate of $705 per ton, remaining unchanged over the previous week.
Earlier during last week, US-based AK steel had announced its decision to hike the current spot market base price of Hot Rolled Coil to $700 per ton. The hiked price was made effective for all new orders.
The limited supply from Midwest region, disruptions at key mills and delivery issues on the Great Lakes have led to the hike in domestic HRC prices. However, market participants anticipate that the price hikes would be relatively ‘short-lived’.