Market sources have advised Steel Market Update (SMU) both California Steel Industries (CSI) and U.S. Steel/Posco (UPI) have opened their order book for April production as of today (Wednesday, February 09, 2011).

Our sources are telling us the new price levels are a “minimum” of $60 per ton higher on all flat rolled products – hot rolled, cold rolled and galvanized - than their March prices.

California Steel Industries capacity utilization rates continue to improve every month. CSI is reported to have booked 120,000 tons of flat rolled steel orders for the month of March plus an additional 20,000 tons of ERW pipe for a total of 140,000 tons. The expectation is for their April order book to meet or exceed March orders.

The March order book was sold out very quickly and it will be interesting to see how much time it takes for the April order book to be full and closed.