[ferro-alloys.com]US sheet steel prices softened Thursday as mills still have November availability and buyers await a signal to restart buying.

The daily Platts TSI US hot-rolled coil assessment fell $2.75/st to $834.50/st, while the daily Platts TSI US cold-rolled coil assessment dropped $2.50/st to $938/st.

Despite attempts by mills to increase prices by $40/st two weeks ago, the daily Platts TSI HRC assessment remains mostly unchanged from the period prior to the proposed hikes.

Some mills initially attempted to raise their offer prices, with mixed indications about a full $40/st increase following the announcements. However, traction at the higher offer level has been limited and not all participants decided to enforce the increased prices.

"The increase has at least put a floor on the market, but I am not really seeing much upside," said one service center source.

A mill indicated it is difficult to raise prices on two week lead times and retreated on the higher prices after one day, the service center source added.

He said there was a possibility of HRC transactions occurring at $840/st, but with real orders it was more likely to be $820/st. In addition, the service center source indicated CRC prices were closer to $920/st.

A Midwest service center source did place a HRC order at $840/st from a Midwest mini-mill, but for just 180 st with delivery acknowledged to be for the first week of December. He noted not being an active or large spot market participant, leaving him limited leverage or desire to negotiate a lower price.

The proposed increases did not gain much traction in the Midwest, particularly in automotive-heavy regions such as Detroit, according to one mill source. The reluctance of automotive original equipment manufacturers to finalize 2019 contracts at higher prices is having a trickle-down effect on the service centers and distributors serving them, he added.

He indicated prices were closer to $800/st and a $20/st spread in either direction. The highest prices achieved had been at $810/st for 2,000-3,000 st orders in the Midwest. Still, there were outstanding offers at $820-$830/st for small-volume inquiries.

The timing of the increase was still considered questionable, with a second announcement expected by some before the Thanksgiving holiday in late November.

Mills must book a good portion of their January order book before the market enters the typical holiday lull, when commercial activity slows, the mill source added.

A trader said he thought the increase was probably three to four weeks too early. "Domestic mills have a fairly solid order book, but not as solid as they would like," he added, as there are still pockets of availability and short lead times.

Still, the source said he did not expect much change in pricing over the next 30-60 days despite this increase mostly failing to raise prices.

(S&P Global Platts)

• [Editor:王可]