US sheet buyers and sellers alike seem to think the market is in a holding pattern, but whether that represents stability or stagnation is up for debate, Kallanish understands.

A source at one top-tier mill maintains that some hot-rolled buyers are paying upwards of $440/short ton for hot-rolled material. He concedes however that the bulk of transaction volume is closer to $400-420/st when volume and regional effect is taken into account.

“The market seems stable right now more than anything, and I would argue that is OK,” he says. “Of course, prices could be higher, but buyers and sellers are both being cautious about not getting too far extended on buy-sell commitments. So buying activity is average, but also way better than Q4.”

A service centre executive, however, disagrees that much meaningful volume is being done at $440/st and pricing may be headed back down.

“There’s nothing to push the prices where the mills want them to be except automotive, and that’s not enough to sustain their latest increases,” he says. “A mill rep thinks the prices have peaked, and there may be a slight adjustment in the second quarter.”

A second service centre executive says a $400-440/st spread is accurate, with little volume at either end. One large integrated mill, he says, is settling most of their business at the $420/st mark.

Kallanish held its hot-rolled assessment Tuesday at $400-440/st and its cold-rolled assessment at $550-570/st. All prices are ex-works, domestic mill.