Pricing for domestically produced steel coil in the US is strengthening, and multiple mills are currently closed for booking spot orders because of intensifying market conditions and frantic inquiries, sources inform Kallanish.

Hot rolled coil prices are constantly on the move, with a reported range of $720-780/short ton this week, up from $670-720/st last week. Cold roll has jumped to $1,000-1,020/st, from $940-1,000/st.

Nucor raised its weekly published consumer spot price on HRC to $820/st on Monday (see Kallanish 18 February). Some buyers speculate that transaction prices are in the midst of climbing as high as $800-840/st. For the mills that are closed for spot orders, new HRC prices could be as high as $900/st when they resume bookings, the sources say.

A midwestern distributor says that none of the five mills he has tapped for quotes is offering spot prices at this time.

“Booking is completely closed for March and mills are not accepting new orders for April yet. So, I have no idea where pricing is and no idea what lead times are at this point,” explains the distributor. 

A distributor in the Ohio Valley says that larger orders and contract business are taking precedence over regular spot purchases. 

“Mills paused any order intake while they sort out their next steps," the second distributor observes. "Nucor lifted prices to $820, but none is available at that price. I think the next price stage will be about $900. ... Demand was improving coming into the tariff scenario. This means second half of 2024 was bad, and from mid-January it was a bit better. Demand is only one side of the dynamic, though. If prices are at $800, the opportunity for import supply, especially normal lead-time supply from Canada and Mexico, is constrained."

The Ohio Valley source adds: "I'm thinking the market normalises a bit around $900, as Canada and Mexico will absorb the extra tariff costs if the sell price is $900 or higher. Others exporters, too, but it requires a longer lead time to get that going. Then we'll see what happens with demand, and if the US sellers decide to adjust prices lower to [take] share away from imports or just keep production where it is and enjoy higher prices.”

A second midwestern distributor says that not having mill quotes is not a problem because the orders for spot were not there this week. 

“We’re not seeing any panic buying. Remember when prices were increasing at a crazy pace last year? Then there were periods when they came down. The key to smart buying is to work your buys for the down periods. You look for the price peaks and wait,” states that distributor.

In the equivalent week of 2024, HRC prices were in a range of $900-920/st. CRC was $1,250-1,260/st. 

All prices are ex-works domestic mill.