According to market sources, US factories, using new markets for flat products, are now negotiating on the basis of recently acquired positions.
“The factories are responsible,” says one Midwestern buyer, referring to the $ 40 /ton double increase announced since late July.
This increase is said to be gaining momentum in the market, fueled by a larger-than-expected increase in scrap in September and the base load of the auto industry, which is desperate to regain ground lost in the early stages of Covid-19.
“Customers who demanded a price cut from August to September started paying for money in September, and we expect the same in October,” says a source at one of the leading factories. “Our order book remains in good shape and we are in October and beyond for all lead times. And to be honest, most of the customers have chosen the October space and are shipping those orders this week, so we’re essentially in November. ”
On Monday, the companies increased prices for a range of hot-rolled products to $ 480-520 per ton, and cold-rolled products to $ 690-740. All prices are ex works.