Will US HRC prices drop further?

Friday, 02 September 2016 11:57:58 (GMT+3)   |   San Diego
       

US domestic hot rolled coil (HRC) spot market prices for the “average buyer” have adjusted slightly since our last report a week ago, with the most commonly reported spot price transaction range having softened by $0.50 cwt. ($11/mt or $10/nt) on the top end in the past seven days. ($639-$661/mt or $580-$600/nt), ex-Midwest mill.

Several SteelOrbis sources, however, note that volume-sized buyers “aren’t exactly having any problems getting deals.”  Last week, SteelOrbis reported that one US domestic flats mill booked an order at $28.00 cwt ($617/mt or $560/nt) ex-Midwest mill.

“I wouldn’t be the least bit surprised if there were some very quiet deals that were taking place below that range,” one Midwest-based source added.

Another source, who, earlier this year predicted that the US domestic HRC spot market would likely fall until prices leveled out around $27 cwt. ($525/mt or $540/nt) ex-Midwest mill, now thinks prices “could tick a few notches below that once everything is said and done.”

In terms of current futures offers, those have remained steady.  As with last week, US import HRC from Korea and Turkey continue to be heard at $25.00 cwt.  ($551/mt or $500/nt), DDP loaded Truck in US Gulf coast ports.  Offer prices from Mexican steelmakers are also reported to be trending at the same price point.


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