US hot-rolled coil prices were unchanged on Nov. 30 but tight supply continued and a strong scrap outlook ahead of December trading made higher prices more likely for flat-rolled products.

The daily Platts TSI US HRC index was unchanged at $784/st. The index extended its rally to nearly $350 since early August when it reached almost a five-year low.

The market was mostly quiet after the holiday weekend. Buy-side sources reported limited spot buying options as most mills kept their books closed.

There was only one mill that still had January availability and was quoting spot inquiries at $840/st, according to a Midwest buyer. He added that a Southern mill revised its pricing to the same level after having quoted at $740/st about a week ago.

In addition to the supply tightness in the US market, the buyer emphasized the tightness in the global steel markets. As a result of intensifying tightness, he said he would not be surprised to see HRC prices reach $900 in upcoming months.

A Midwest service center source was waiting for one of his major suppliers to open its order books. He expected the steelmaker to open its books Dec 1 or 2.

With limited supply availability, “Mills name their own price at this point,” according to the service center source. “There are some buyers who have been begging for tons and they will pay what they need to pay to get the steel.”

A trader, meanwhile, noted low inventory levels in the automotive supply chain. He expected the automotive sector to maintain its output levels with auto dealer inventories remaining low.

Moreover, some buyers will not have the chance to avoid spot buying until the end of the first quarter of 2021 due to their depleting stocks, according to the trader.

-- Ali Oktay