Last week, the most commonly reported spot market transaction range for US domestic hot rolled coil (HRC) softened by an additional $0.50 cwt. ($11/mt or $10/nt) which brought the current average spot market transaction range to $19.50-$20.50 cwt. ($429-$452/mt or $390-$410/nt), ex-Midwest mill. This week, prices have continued to trend in that approximate range, although deals for large-sized buyers continue to be available.
“Everyone is wondering if this is finally the bottom,” said one Midwest-based source, “but on the other hand, we’ve been asking ourselves this question since August.” This price point, however, could in fact hold, as many suspect that US domestic scrap prices will hold stable in December. If scrap prices remain steady, this could prevent further slippage for US domestic HRC spot prices. High inventories continue to be a problem, though, which has ex-mill buying activity trending light.