The most commonly reported spot price transaction range for US domestic hot rolled coil (HRC) has fallen by approximately $0.50 cwt. ($11/mt or $10/nt) on the top end since our last repot a week ago. This brings the current average ex-mill transaction range to $31.00-$31.50 cwt. ($683-$694/mt or $620-$630/nt).
Sources close to SteelOrbis, however, say that more and more transactions are starting to take place “closer to the $31 level,” adding that last week’s price increase announcements by ArcelorMittal USA (AMUSA), California Steel Industries (CSI) and NLMK USA, which many believed were mills’ attempt to establish a “price floor” as opposed to actually trying to push prices higher, “may have fallen below the mark.”
“Summer is generally slow, scrap prices are starting to soften and the run-up on prices that took place earlier this year was all tied to the decreased availability of imports. This certainly wasn’t a demand-based run-up, it was supply-based,” another source said. “Everyone is being cautious when it comes to buying because we’re all worried this house of cards will eventually tumble. The increases were too much, too fast.”