The most commonly heard spot price transaction range for US domestic hot rolled coil (HRC) has narrowed by $1.00 cwt. ($22/mt or $20/nt) on the top end since our last report a week ago, which brings the current average spot market price transaction range down to $32-$33 cwt. ($705-$728/mt or $640-$660/nt), ex-mill. Some sources close to SteelOrbis are also reporting that “volume buyers aren’t having any problems negotiating deals.”
And while some believe that current spot market prices could continue to correct until prices drop to $30-$32 ($661-$705/mt or $600-$640/nt), ex-mill, others point out that a number of buyers were “reluctant to do any significant stocking when prices were on an upswing.”
“People kept close watch on their inventory levels and we may now finally be at the tipping point, where people need to start buying again,” one source said.
Additionally, sources report lead times remain unchanged week-over-week, at three to six weeks, depending on the mill.