Confirmed deals have driven hot-rolled coil prices in the United States over $59.50 per hundredweight ($1,190 per short ton), to an all-time high.
Fastmarkets' daily steel hot-rolled coil index, fob mill US was calculated at $59.63 per cwt ($1,192.60 per ton) on Thursday February 11, up by 0.98% from $59.05 per cwt the previous day and 0.68% higher than $59.23 per cwt one week ago.
Inputs were received in a range from $58.00-62.50 per cwt, representing confirmed deals, mill offers and general assessments of spot market pricing levels. A transactional input was carried over within the producer sub-index to minimize day-to-day volatility.
Heard in the market
This marks the third time in a week that Fastmarkets' hot-rolled coil index has set a new all-time high, after climbing to $59.23 per cwt on Thursday February 4 and $59.24 per cwt on Monday February 8, and sources do not expect the flat-rolled steel segment's historic bull market to retreat any time soon.
Lead times have remained stable and supply continues to be restricted to an unprecedented degree, with activity in the automotive; heating, ventilating and air conditioning (HVAC); and non-residential construction segments still strong.
At the same time, the global shortage of computer chips has yet to dent steel demand from the automotive end market, sources said, while the arrival of imported flat-rolled steel expected in late spring will not be sufficient to ease the current shortfall or pressure domestic prices lower.
Quote of the day
"Supply is flat-out atrocious," a consumer source said. "Demand is strong, and mills are still running two-plus weeks behind."