CRU: U.S. Sheet Prices Continue to Rise as Mills Again Ask for More

By CRU Principal Analyst Josh Spoores

U.S. sheet prices continue to be supported by new mill price announcements as HR coil gained $5 /s.ton, rising to $553 /s.ton. This price assessment reflects transactions taking place last week. On Monday of this week, ArcelorMittal led the third round of increases since late June, signaling $630 /s.ton and $800 /s.ton for HR and CR coil prices, respectively. Other mills have again opted for a $40 /s.ton price increase. These higher asking prices came after HR coil rose by a total of $48 /s.ton over the past three weeks. We expect our transaction-based price assessment will continue to rise, yet $630 /s.ton looks quite rich to us based on current demand, inventory levels, rate of incoming orders at service centers, as well as the availability of prompt supply from North American producers. Furthermore, and possibly most important, contract buyers will use their discounted monthly price to go after business.