US hot-rolled coil prices edged higher to a new all-time high on Aug. 30 as multiple mills were reported to be targeting a minimum of $1,940/st for their October production.
The daily Platts TSI US HRC index rose by $16 to $1,938.25/st on an ex-works Indiana basis.
“It seems clear to me that current supply-demand conditions will remain in place the rest of the year,” a Midwest service center source said. “Supply is still tight and demand is sustaining.”
The source was anticipating mills to capture their target prices in the short run. He said that he needed to pay $1,940/st for more than 250 st of October production from a Midwest mini-mill.
“Pricing is out of line; too high for manufacturers and discussion centered around getting to a price point everyone is comfortable with,” another service center source said. He added that a Southern mill started quoting its October availability at $1,960/st while his representative from a mini-mill informed him about targeting $2,000/st in upcoming days.
“Slope of increase in pricing is softer,” a third service center source said. “I think the market will stabilize somewhere around current levels.”
The market was disagreeing on how prices were going to react after moving sideways for a while, according to the third service center source. He anticipated a steep correction in the following two months but added that the majority of the market was not expecting any major changes this year.
The combined Platts TSI price index uses a volume-weighted-average calculation, according to TSI’s standard, to determine value on an ex-works Indiana basis.
— Ali Oktay