There was word Friday in the US hot-rolled coil market – among several traders and big service-center buyers – that Nucor is preparing to soon open its May spot book for HRC orders, and most sources expected another fairly strong attempt to push the price higher. "The marketplace is not really ready for another hike," a major Southeast service center buyer told Platts, "but a $40 price-hike announcement would not be a surprise."

In an earnings conference call, however, at least one producer stated that its earlier-announced price hikes were indeed being accepted by steel consumers. "We are seeing our March and April price increases stick in the market," said Jim Bouchard, Wheeling-Pittsburgh and Esmark CEO. In early March, Wheeling-Pitt said it would raise transaction prices of all flat-rolled products by $50/st on orders scheduled for shipments effective April 1.

Meanwhile, several Nucor customers offered as explanation for the anticipated price hike that the steelmaker still needs to get its spot price more in line with its contract business. Nucor's typical contract deal, which carries a surcharge for scrap, is now at about $620/st EXW (ex-works), which is considerably higher than spot transactions.

"Nucor's been trying to get $580/st EXW for April rollings, and even that's been a stretch," said an East Coast service-center buyer. Integrated producers appear to now have a raw material cost advantage over flat-rolling mini-mills that are paying near-record prices for scrap, merchant pig iron and steel scrap substitutes like DRI.

For example, one big trader told Platts that Mittal Steel USA's April bookings have been at $550/st, EXW Indiana, about $30/st below Nucor's asking price. "There is upward pressure on pricing," he said, "but still a wide disparity."