US HRC prices continued rising on June 1 as limited supply options persisted in the market and the majority of recent inquiries were at a minimum of $1,640/st.
The daily Platts TSI US HRC index was up $4.75 at $1,620.75/st on an ex-works Indiana basis.
A trader attributed the current market as “bull market of all times” and cited no signs of weakness in demand. He put the market at a minimum of $1,640/st if you could find a mill with spot availability.
A Midwest buyer, meanwhile, cited an offer at $1,650/st and he thought the mills were establishing a minimum at that level.
A service center source echoed strong demand: “We are trying to pick up more spot as we can still get a buyer prepared to take those tons.”
After getting no quoted by two of his major suppliers, the service center source was able to get an offer at $1,550/st delivered Houston from Mexico with an October arrival time. Despite its long lead time, he was considering of placing an order as he did not see spot availability widen in the short run.
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