New York (Platts)--15Dec2010/610 pm EST/2310 GMT
The price of hot-rolled coil steel in the US increased another $5/st Wednesday to a midpoint of $670/st ex-works Indiana, as buyers scrambled to secure what tons they could, according to both buy- and sell-side players. The price of cold-rolled coil was steady Wednesday, after both products jumped about $60/st Tuesday. "Just about everyone is paying $680 now [for HRC]," said a big buyer in the Midwest, adding "there is word some mills are quoting export HRC deals at $660/st ex-works, so that might be the floor--but all but a few mills are booking February." An East Coast trader agreed. "If you're smart and lucky enough, maybe you can get $660 ex-works, but that's a big maybe and it won't be around long -- certainly not for February delivery," the trader said. Several sources said some mills -- even those at different locations within the same company -- were already preparing to increase HRC prices to $700/st, or higher, mark. "It would not surprise me in the least," said another Midwest buyer. "Many of us rushed into the market in a tizzy and there are few tons left at lower price levels." Added a buyer in the southern US: "Mills will do this at a time like this to compensate for the orders they sold at lower prices just days ago. It pulls up their averaged realized pricing." Another Great Lakes-area buyer reasoned that automotive demand looks strong for Q1 and this has helped drive the CRC and galvanized markets most directly, which need HRC as a substrate. "I saw one forecast that has North American production at 14 million units annualized in the first quarter," said the southern service center buyer. JD Power Automotive Forecasting's latest estimate pegged Q1 vehicle production in North America at an annualized rate of nearly 13 million units. JD Power, like Platts, is a division of The McGraw-Hill Companies. --Joe Innace, joseph_innace@platts.comSimilar stories appear in Steel Markets Daily. See more information at http://bit.ly/SteelMarketsDaily