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Key steel at products
Source: dashboard.fastmarkets.com/m/00000020-0000-4000-8000-000000000000
Flat product news
CRC, galv prices up again; spot well
runs dry
By Dom Yanchunas - Friday 22 January
Prices for cold-rolled and galvanized steel sheet in the United States
climbed again - extending their historic highs - after buyers reported
further challenges in competing for what little spot tonnage is o ered by
mills.
Fastmarkets’ weekly price assessment for steel cold-rolled coil, fob mill US
rose to $64 per hundredweight ($1,280 per short ton) on Thursday January 21
from $63 per cwt on January 14. The assessment has gained 106% since
dropping to its 2020 low of $31 per cwt in August.
Fastmarkets’ price assessment for steel hot-dipped galvanized coil (cold-
rolled base), fob mill US leaped to $65 per cwt ($1,300 per ton) on Thursday
from $63 per cwt ($1,260 per ton) one week earlier. The assessment is higher
for the 24th consecutive week, soaring 110% since its 2020 low of $31 per cwt
in August.
Fastmarkets’ weekly price assessment for steel hot-dipped galvanized coil
(hot-rolled base), fob mill US also rose to $65 per cwt from $63 per cwt.
Lead times are mostly out past March - at least nine weeks.
Producers - especially integrated mills - are busy rolling contract tons for the
automotive sector, which is experiencing a demand surge that caught many
market participants o -guard. Occasional spot tons drip into the market for
March shipment, but otherwise, buyers must wait for April rollings and most
of mills are not o cially o ering April material yet, according to distribution
and trading sources.
"Right now, not a single mill is quoting me product because the books are
closed," one service center source said. "The last time they opened their
books, we were given half the tonnage we requested."
While some market participants said the apparent cooling in the US ferrous
scrap trade may foretell an easing of steel sheet prices, others said lower
scrap settlements will not be enough to halt steel's momentum. Only an
increase in production - through restarts, new capacity and deferred
maintenance - can do that.
"It may peak, but it will not start to ease until probably the second half [of
the year]," the service center source said. Therefore, when mills open their
April books, prices are likely to be higher still.
One sheet consumer said at least two mills are talking about delaying
scheduled second-quarter maintenance outages "to try and sell while the
market is hot."
This material is provided by Euromoney Global Limited (a company registered in England and Wales under number 142215) doing business as Fastmarkets MB and
Fastmarkets IM, and Metal Bulletin Holdings LLC doing business as Fastmarkets AMM, collectively referred to in the material as ‘Fastmarkets’.
It is provided to you subject to your compliance with the terms of your license agreement with Fastmarkets, in addition to the Fastmarkets Copyright Notice and Disclaimer.
If you need additional access please contact hello@fastmarkets.com
Weekly Market Newsletter
15 - 22 January 2021
CSI opens April order book, jacks up
prices
By Dom Yanchunas - Wednesday 20 January
California Steel Industries (CSI) is accepting at-roll orders for April
shipment, the company said in a letter to customers on Monday January
18.
CSI's April prices are $250 per short ton ($12.50 per hundredweight) higher
than those for March material, according to market participants.
CSI's letter does not specify pricing, but the asking price for hot-rolled coil is
$59.50 per hundredweight ($1,190 per ton) for April shipments, according to
two service center sources. The sources said the March level was $47 per cwt.
March order books at the Fontana, California-based producer were opened
on December 14, according to a letter at the time.
Fastmarkets' daily steel hot-rolled coil index, fob mill US was calculated at
$56.86 per cwt on Tuesday January 19. On December 14, the daily index was
calculated at $46.78 per cwt. Fastmarkets' HRC index represents material
traded east of the Rocky Mountains.
Monday's noti cation from CSI cites "signi cant swings in economic
conditions related to the Covid-19 pandemic" and cautions that prices and
output may change.
"All pricing is subject to slab availability and mill capacity," the company
stated in its letter.
HRC holds under $1,140/t amid spot
freeze
By Dom Yanchunas - Tuesday 19 January
Hot-rolled coil prices in the United States held steady while buyers
continued to struggle in their quest for spot tonnage at the domestic
mills.
Fastmarkets’ daily steel hot-rolled coil index, fob mill US was calculated at
$56.86 per hundredweight ($1,137.20 per short ton) on Tuesday January 19,
little-changed from $56.92 per cwt on the prior business day – Friday January
15 – and an increase of 2.05% from $55.72 per cwt a week earlier on January
12.
Inputs were received in a wide range of $50-60 per cwt, representing o ers
and assessments of current spot pricing levels from distributors and
consumers. An input at the low end of the range was eliminated at the
assessor’s discretion because there was no corroborating evidence that such
a price was still available. Data representing an o er and a deal was carried
over in the producer sub-index due to a lack of liquidity in that sub-index.
Heard in the market
Sources reported a continued acute shortage of spot material, with service
centers and end users sometimes able to procure only a fraction of the
tonnage they need to operate.
Customers have begun to cancel orders and turn down work either because
they cannot a ord the expensive steel or because they believe a pricing
correction is on the horizon, possibly in the second quarter. Some sources
© Fastmarkets 2021
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Key steel at products Weekly Market Newsletter 15 - 22 January 2021 2

cited a potential retreat in the ferrous scrap trade, while others thought that
lower scrap settlements would not necessarily lead directly to an immediate
slide in coil pricing. Some mills are expected to begin quoting spot pricing
soon for March/April shipments.
Sources agreed that the wide price variance in the very few reported spot
deals was a contributing factor in the HRC index spending the past week
lurching up and down between about $55 per cwt and $58 per cwt, the all-
time high achieved on Thursday January 14.
Quotes of the day
“People who are paying attention to their inventory and trying to rationalize
that with a business plan, good luck!” one midwestern distributor said.
“The mills have become very crafty in trying to keep the mania alive. The
longer it appears there is a shortage, the longer they can cash in on insane
pro t margins,” a second midwestern distributor said. “We are seeing imports
become much more attractive.”
“Prices are getting a bit crazy because only a few spot tons are setting the
market, but I am not seeing major relief,” one steel consumer stated.
“Automotive is running at their highest levels through rst quarter, so no one
is able to get their inventories caught up, which should keep buying steady in
the second quarter – not to mention the mills are pretty dialed-in on
contractual commitments.”

Key at products
Symbol Description Date Price +/-

MB-STE-0028 Steel hot-rolled coil index domestic, exw Northern Europe, €/tonne 22 Jan 2021 711.25 -0.25%

MB-STE-0047 Steel hot-rolled coil import, cfr main port Southern Europe, €/tonne 20 Jan 2021 675 - 700 0.00%

MB-STE-0107 Steel hot-rolled coil export, fob main port Turkey, $/tonne 22 Jan 2021 790 - 800 -0.31%

MB-STE-0014 Steel hot-rolled coil export, fob Black Sea, CIS, $/tonne 18 Jan 2021 765 - 780 -1.90%

MB-STE-0144 Steel hot-rolled coil index export, fob main port China, $/tonne 22 Jan 2021 640.59 0.00%

MB-STE-0139 Steel hot-rolled coil import, cfr Vietnam, $/tonne 22 Jan 2021 670 - 680 0.00%

MB-STE-0184 Steel hot-rolled coil index, fob mill US, $/cwt 22 Jan 2021 55.04 -0.85%

MB-STE-0153 Steel cold-rolled coil domestic, delivered Eastern China domestic, yuan/tonne 22 Jan 2021 5300 - 5330 -1.57%

MB-STE-0026 Steel cold-rolled coil domestic, exw Northern Europe, €/tonne 20 Jan 2021 800 - 830 3.16%

MB-STE-0185 Steel cold-rolled coil, fob mill US, $/cwt 21 Jan 2021 64 1.59%

MB-STE-0172 Steel cut-to-length plate carbon grade, fob mill US, $/cwt 22 Jan 2021 49 4.26%

MB-STE-0034 Steel domestic plate 8-40mm, exw Northern Europe, €/tonne 20 Jan 2021 620 - 660 5.79%

MB-STE-0155 Steel plate domestic, delivered whs Eastern China, yuan/tonne 22 Jan 2021 4520 - 4550 0.00%

MB-STE-0883 Steel hot-dipped galvanized coil (hot-rolled base), fob mill US, $/cwt 21 Jan 2021 65 3.17%

MB-STE-0186 Steel hot-dipped galvanized coil (cold-rolled base), fob mill US, $/cwt 21 Jan 2021 65 3.17%

MB-STE-0021 Steel hot-dipped galvanized coil domestic, ex-whs Eastern China, yuan/tonne 22 Jan 2021 5920 - 6060 -1.40%

MB-STE-0030 Steel hot-dipped galvanized coil domestic, exw Northern Europe, €/tonne 20 Jan 2021 830 - 850 3.07%

MB-STE-0187 Steel coil Galvalume, fob mill US, $/cwt 19 Jan 2021 62 29.17%

MB-STE-0850 Steel coil Galvalume import, cfr main ports South America, $/tonne 22 Jan 2021 890 - 900 -1.65%

This material is provided by Euromoney Global Limited (a company registered in England and Wales under number 142215) doing business as Fastmarkets MB and
Fastmarkets IM, and Metal Bulletin Holdings LLC doing business as Fastmarkets AMM, collectively referred to in the material as ‘Fastmarkets’.
It is provided to you subject to your compliance with the terms of your license agreement with Fastmarkets, in addition to the Fastmarkets Copyright Notice and Disclaimer.
If you need additional access please contact hello@fastmarkets.com © Fastmarkets 2021