US hot-rolled prices appear to have hit yet another historic milestone, topping $1,600/short ton, Kallanish reports.
Market concern last week about a China-led pullback appears unfounded, says a source at one top-tier domestic mill.
“The pullback in China seems only related to China, and the sustainability of the pullback is something I question as they never seem to make less steel, like they say they are going to,” he says.
The source notes that hot-rolled was sold in the US for $1,600-1,620/st last week, with the bulk of transactions being north of 1,000 st.
Cold-rolled and coated, moreover, were sold from $1,800-1,830/st.
A Midwest buyer confirms that he now cannot source hot-rolled for under $1,600/st, while a West Coast buyer adds that lingering quotas on South Korea are insulating the US from any Chinese market shocks.
“Obviously, China cannot ship direct, but they could ship into South Korea,” he says. “But the strict quota should prevent South Korea from dumping.”
Kallanish raised its hot-rolled assessment Monday to $1,600-1,620/st, with cold-rolled likewise moving up to $1,800-1,820/st. All prices are ex-works, domestic mill.
Dan Hilliard USA