Firmed US domestic HRC prices spawn south-of-the-border price increase

As expected, Mexican hot rolled coil (HRC) producers have raised their offer prices to the US, bringing their new approximate price range within $1.00 cwt. ($33/mt or $30/nt) of US domestics. This isn’t exactly a surprise, according to SteelOrbis sources, who have long believed that mills located south of the US border would want to cash in on firmed prices in the US domestic market.  Russian spot prices, however, have held steady, although trader sources say interest in booking offshore is starting to wane, especially since previously booked tons are already on the water. 

Meanwhile, despite US domestic prices having trended at sideways, deals on the lower end of the range of $33.00-$35.00 cwt. ($728-$772/mt or $660-$700/nt) ex-Midwest mill are becoming harder and harder to come by. Last winter’s harsh bouts of weather have led to pent up demand, according to service center sources, who describe current market conditions as being robust.