The most commonly reported spot price transaction range for US domestic hot rolled steel has narrowed by $1.00 cwt. ($22/mt or $20/nt) on the top end since our last report a week ago, due to still-short lead times, decreased buying activity and an overall sense of buyer-cautiousness.
Today, the average transaction range is being heard at $26-$27 cwt. ($573-$595/mt or $520-$540/nt,) ex-Midwest mill. Sources close to SteelOrbis have also indicated that the largest, volume-sized buyers have been able to conclude deals “closer to $25 cwt.” ($551/mt or $500/nt).
Falling prices have many buyers being extra cautious; those who need material are purchasing on an as-needed basis, sources note, adding that the forecast “sideways to slightly down” pricing within the US domestic scrap market for October has many market players questioning how US flat rolled steel prices will be impacted.