Here at Roller Die, our awareness of steel market activity is crucial. Many of our blog entries are dedicated to the topic. Our knowledge dictates our timing — the goal is to purchase when prices are lowest, to pass savings on to our customers. Plan your projects soon; steel prices are changing. Please see the letter below from our vendor, Kenwal Steel, regarding an anticipated price increase:

“…All of the other mills advise that there are more increases coming. I hope that everyone has their needs covered. If not, and you are contemplating on when to make your next purchase (or are possibly waiting to see if the increases hold) please consider the following:

• January 11, AK Steel announced a $60/ton increase for all new orders for all products. That increase is real and not going away.
• There are no March Cold Rolled tons available out there right now. All Cold Rolled orders are being acknowledged for April.
• There are very limited and possibly no February hot rolled tons available. We are likely looking at March for Hot Rolled as of today.
• Mills are currently paying $395/G-ton for busheling. (Don’t sell your scrap until next month!)
• Demand is currently stronger than anticipated. End user forecasts in many market segments show higher than anticipated demand in the next 90 days.
• In the eyes of the steel mills: The current “higher than anticipated” levels of demand has filled their order books for March faster than they anticipated, combined with increases in raw material costs (i.e. scrap) validates the current and forthcoming price increases.

Regardless of which service center you purchase your steel from, it would be my suggestion that everyone start thinking about securing their April needs now (for month-to-month or spot buyers) before this thing jumps up again.”

Roller Die is working to ensure our steel inventory stays consistent and that prices remain low. We are confident in our strategy; please contact us today to start a successful project.

COLD ROLLED

Most of the integrated mills are full for March on Cold Rolled. We were busy rushing our March orders to the likes of AK and Severstal yesterday. Mittal is currently on lead times but everything I hear tells me that they are full for March. USST is still a questions mark. Have heard that their larger mills(like US Gary) are already closed for march but a couple of their lesser sized regional mills still have a small amount of capacity for March(Mon Valley). Severcorr is another one with a big question mark as well….

In regards to the Mini mills, I have not heard a lot about SDI lead times or about them being aggressive in the Cold Rolled market lately, and Nucor I believe may still have some late March tons available, but those are likely to be dried up soon. Like next week, if not already full.

Hot Rolled

The Mini mills still have some late February availability. It appears that the Integrated mills are all pretty much into March for Hot rolled starting with orders entered next week. Mittal with a couple recent inquiries said late March and even April for some specific grades with recent inquiries….Hot Rolled is a little confusing simply due to the Integrated mills having the ability to stop producing slab orders to take push in HR coil orders.

Pricing

The mills are doing everything that they can to get prices up for March by $2.00/cwt….will be real interesting to see where we are with demand in 30 days…if the demand holds, then we can all be assured that some of these proposed increases will stick.

Bottom line is that you should be looking at your March hot rolled and April Cold Rolled needs now, and don’t be surprised if we hear price increase announcements soon for March orders.