Regardless of decreased flat-rolled steel production in the US market, spot prices are still softening, while some import prices are beginning to firm.
US domestic spot prices have been sliding down from their lofty price levels since late March, and with plenty of steel around and not enough demand to soak it all up, even a decrease in production hasn't prevented a further price decline. As a result of last week's tornados that wreaked havoc throughout the US southeast, at least two major US flat-rolled mills are still unable to resume steelmaking operations due largely to power outages still prevalent in certain tornado-affected regions in Mississippi and Alabama.
While plant outages have seemed to adversely impact overall raw steel production levels temporarily-US raw steel production fell nearly 3 percent last week as the capacity utilization rate dropped 2.1 percent to 73.1 percent-they have not halted the decline in US domestic spot prices. The average price ranges for hot rolled coil (HRC) and cold rolled coil (CRC) in the Midwest have not changed in the last week, however actual spot transactions are being placed on the lower end of $40.00-$42.00 cwt. ($882-$926/mt or $800-$840/nt) and $46.00-$48.00 cwt. ($1,014-$1,058/mt or $920-$960/nt), respectively, both ex-Midwest mill.
On the West Coast, the pricing trend has been much more pronounced over the past week. After closing May order books about two weeks ago, West Coast flats mills opened up order books for June this week with prices significantly below those for May. Spot prices for June delivery are about $42.00-$43.00 cwt. ($926-$948/mt or $840-$860/nt) ex-mill for HRC and $47.00-$48.00 cwt. ($1,036-$1,058/mt or $940-$960/nt) ex-mill for CRC, down $3.00-$4.00 cwt. ($66-$88/mt or $60-$80/nt) compared to May delivery prices.
In addition to slower order entry rates and falling US Midwest prices, West Coast mills have been impacted by lower-priced imports as well. Mexican HRC offers in the $38.00-$40.00 cwt. ($838-$882/mt or $760-$800/nt) FOB loaded truck in US Gulf ports range continue to compete with US domestic prices on both coasts, with most offers trending toward the bottom of the range this week. Russian HRC offers on the other hand have actually firmed since our last report a week ago, and while the offer price range is still $36.00-$38.00 cwt. ($794-$838/mt or $720-$760/nt) duty-paid FOB loaded truck in US Gulf ports, that range is likely to rise by about $1.00 cwt. ($22/mt or $20/nt) in the next few days.
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic | ||||
| HRC | $40.00-$42.00 | $882-$926 | $800-$840 | neutral |
| CRC | $46.00-$48.00 | $1,014-$1,058 | $920-$960 | neutral |
| Mexico* | ||||
| HRC | $38.00-$40.00 | $838-$882 | $760-$800 | neutral |
| Russia** | ||||
| HRC | $36.00-$38.00 | $794-$838 | $720-$760 | neutral |
| China** | ||||
| CRC | $44.00-$46.00 | $970-$1,014 | $880- $920 | neutral |
**Duty-paid FOB loaded truck in US Gulf ports