Short lead times, high inventory levels and supply that continues to outpace demand has US domestic hot rolled coil (HRC) prices still trending soft. Current ex-Midwest mill spot prices continue to trend in the approximate range of $21-$22 cwt. ($463-$485/mt or $420-$440/nt), but many believe this price range could soften should US domestic scrap prices fall by the forecasted $20-$30 per ton in October.
“It’s a mess out there,” said one Midwest-based source. “There’s too much inventory on the shelves and there are still plenty of import HRC tons that are on the water.” As with last week, service and distribution center sources say in-stock HRC is being sold to end-users at below replacement cost as a means of gaining cash flow.