There has been little stopping US domestic flat rolled spot prices from deteriorating in recent weeks, but the idling of RG Steel's three mills could positively impact prices. Overcapacity has been the main driver of the softening flats market the last couple months, and RG Steel's announced plans to shutter production indefinitely has some industry sources speculating that it could give a psychological boost to the market. A few buyers who have been holding back orders may secure orders at current prices, but it's still largely uncertain how the mill closure will affect the overall market.
Inventories still remain high, and the trend for scrap prices in June has grown more pessimistic in the last week as some are predicting a drop of as much as $20-$30/lt.
Consequently, hot rolled coil (HRC) spot prices have fallen another $0.50 cwt. ($11/mt or $10/nt) in the last week to $31.00-$32.00 cwt. ($683-$716/mt or $620-$650/nt) ex-Midwest mill. Already, larger buyers have been quoted sub-$31.00 cwt. ex-mill prices, and another drop by next week appears likely. Mirroring the US domestic price trend, Mexican mills have dropped their sales prices in the US by $1.00 cwt. ($22/mt or $20/nt) since last week, and Chinese cold rolled coil (CRC) offer prices to the US are anticipated to fall again in the next couple weeks. Traders tell SteelOrbis that Brazil booked a number of CRC orders from the US, and if Brazilian mills decide they want to sell more CRC to US customers, they will also lower prices to be competitive.
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic | ||||
| HRC | $31.00-$32.00 | $683-$716 | $620-$650 | ↓$0.50 cwt. |
| CRC | $36.00-$37.00 | $794-$816 | $720-$740 | neutral |
| China* | ||||
| CRC | $39.00-$40.00 | $860-$882 | $780-$800 | neutral |
| Mexico** | ||||
| HRC | $31.00-$32.00 | $683-$716 | $620-$650 | ↓$1.00 cwt. |
| Brazil* | ||||
| CRC | $38.50-$39.50 | $849-$871 | $770-$790 | neutral |
**DDP loaded truck delivered into Houston