-Significant price consolidation from $690 to $710 and $890-$910 on coated.  However, in an effort to solidify $700 and $900 as well as to get the CRU price up, the mills have decided to reach for $740 on late January – February tons.  Our feeling is that there is little if any traction at those numbers – they merely serve to help establish a beachhead at $700. At $740 USA price is well in excess of N. Europe and China – this should ultimately destabilize our market come March. With current scrap prices in the mid $400’s – fair value for HRC is likely $660-690, yet markets tend to over reach and over correct. 

-USA scrap is tight as mills cover for strong backlogs.