Platts reported that spot prices of hot rolled and cold rolled coil from US mills increased slightly with HRC settling at a midpoint of USD 415 per short tonne ex works Indiana, in a wider range of USD 400 to USD 430 per short tonne. CRC was up by USD 15 to USD 495 per short tonne ex works Indiana.
Lead times are said to be 4 to 5 weeks for HRC, but about 6 weeks or longer for CRC. Some new orders for August shipments were placed at stronger levels, but buyers also reported that some smaller mills in the US are finalizing HRC orders at July prices.
A Midwest buyer told Platts that "Contrary to most reports, there are some unfulfilled order commitments from buyers for July tons that some mills are trying to lock up. In order to fill their July rolling schedules, the non major mills are being more lenient on pricing."
The major mills, such as Nucor and ArcelorMittal, have advised customers of August HRC price increases to USD 440 per short tonne and USD 460 per short tonne ex works, respectively.
For the most part, buyers and sellers appear to be playing a game of who blinks first. Many US buyers told Platts they are not yet in the market, and several mills have told customers their orders books are closed for August.
In Europe, it is the larger mills that are booking. Flat rolled spot prices increased EUR 10 to EUR 15 per tonne as Italian and Central EU mills gradually withdrew from the market, leaving buyers little choice but to book from higher priced large integrated mills.