HR up another $20/ton ($1.00/cwt) this week, moving from $703 ($35.15) to $723 ($36.15)…highest since beginning of 2012 (6 years).
CR up $7/ton ($0.35/cwt)
GV up $7/ton ($0.35/cwt)
CAPACITY: Though nothing staggeringly new here, production has been on the rise since the beginning of the year, going from 71% to 75%. 2017 mostly ran in the 74-75%, so basically just back to normal rate…
SCRAP: #1 Bushels prices now in across US for February….FLAT is the word….Chicago, Cleveland, The South etc. all reporting same numbers as January…Philly was up $10/gross ton, whereas Hamilton ON was down $8….everyone else same numbers….
So now with HR at $36.15, it has an $18.30/cwt spread over Scrap….very out of line historically (typically more like $14.00 spread)
Additionally, the continued possibility of trade action has the market supported. The most recent industry discussion being that the section 232 investigation has nothing to do with national security and is just a veiled form of protectionism. However, my argument is that the economic security of the USA is intrinsically linked to national security. Moreover, the investigation and the silence regarding actions have done exactly what was needed for the industry. Some of the imports have dwindled, the offers are priced higher as well as the domestic industry seeing considerable price improvement.