While most market sources on Friday said they were unsure why domestic mills have yet to increase US steel sheet prices in response to rising scrap prices, at least one service center executive said it may be the result of relatively balanced supply and demand.
"I still find prices in a downward drift," said the executive, who described himself as a large-volume buyer. "I don't know that that leads to an increase."
He added that imports aren't likely the source for the mills' hesitation to boost prices, saying the expected influx won't reach the US market until late in the first quarter.
In addition, he said concern over rising scrap prices may be overblown. Electric arc furnace producers, he said, have been enjoying the best margins they've seen in the last 18 to 24 months. "I'm not sure there's any money being left on the table," he said.
A second service center executive, however, remained confident that the majority of US mills will push to raise base prices at or above $700/st by the end of the year.
"They might just be trying to keep imports at bay as long as possible," he said. "I just think they're waiting. They had to get contracts done ... [and] I think everybody's waiting for someone else."
Platts maintained its hot-rolled assessment at $670-680/st Friday, though at least one deal was heard for 40 st at $700/st. Due to its non-repeatable nature, it was not factored into the assessment. Platts also maintained cold-rolled pricing at $780-790/st. All prices are normalized to a Midwest (Indiana) ex-works basis.