As a result of a strong automotive order book, AK has enjoyed strong bookings the past couple of months. They have basically sold out June, and July at higher prices that the mini-mills (SDI, Nucor,etc.) There is such a disconnect between the reality of AK's order book and projected profits over the next 3-6 months, and the share price.
It is mid May and June should be sold out on everything except maybe hot rolled product. Typical lead time on cold reduced and coated products would be 6-7 weeks. Rather they are booking at higher prices would depend on contract obligations they may have. Spot market pricing may be increasing but doubt that auto contract tonnage is increasing or at least at the same pace as spot tonnage. Just my guess.
Spot prices are actually down. Check AMM, and CRU indexes. However, so is iron ore, zinc, and scrap. This will help alleviate some cost pressures for the mills. AK, US, and Mittal have good order books as a result of increases in automotive production.The sense on the street is that the automotive mills are cocky regarding pricing, compared to the mini-mills. The mini mill order books (SDI, Nucor, etc), are not as robust, and subsequent lead times are shorter. There are rumors, which are supported by an article, that RG Steel is allegedly having liquidity problems. If they go out, it will certainly have an effect on supply.