Posted on 01 Sep 2020
US sheet mills are now negotiating from newfound positions of strength, according to market sources.
“The mills are in charge,” says one Midwest buyer, referring to the twin $40/short ton increases announced since late July.
Those increases are reportedly gaining traction in the market, spurred on by larger-than-expected scrap gains for September and base-loading from the auto industry, which is desperate to recover ground lost in the early stages of Covid-19.
“Customers who were demanding a price reduction from August into September began settling for up money in September, and we are expecting more of the same in October,” says a source at one top-tier mill. “Our order book remains very good, and we are into October and beyond on all lead times. And, honestly, most of the customers have committed to the October space and are sending those orders in this week, so we are essentially in November.”
Kallanish moved its hot-rolled range on Monday to $480-520/st, with cold-rolled likewise moving to $690-740/st. All prices are ex-works, domestic mill.
Source:Kallanish
