Steel sheet price increases in US garner mostly positive reaction

Price increases of $30/st announced by the majority of US flat-rolled sheet steel producers at the end of last week and on Monday have received generally positive feedback, sources said Tuesday. However, most were still trying to decipher the new price levels.

A buyer said the increase had been going over "pretty well" so far. He added the most important thing to watch over the next week or two will be if lead times start to push out.

Lead times are how buyers "get caught short," he said, if some are managing purchases based off a two- or three-week, hot-rolled coil lead time and then it is pushed out to four or more weeks. Mini-mills would likely benefit from this scenario if they can charge higher prices for expedited orders, he added.

The buyer said US Steel's new target minimum base price was heard to be $510/st for HRC following the $30/st announced increase. He anticipated mini-mills would likely remain just under the $500/st mark for HRC during the initial phases of the increase.