The most commonly reported spot price transaction range for US domestic Grade A ERW BPE standard pipe has softened by approximately $1.00 cwt. ($22/mt or $20/nt) since our last report a week ago, to $44.00 cwt. ($970/mt or $880/nt), ex-Midwest mill, but sources close to SteelOrbis have confirmed that deep discounts are available to volume-sized buyers.
The downticks, many believe, are directly tied to price softening within the US domestic hot rolled coil market. Last week SteelOrbis reported the most commonly reported spot price transaction range for US domestic HRC had dipped by $3.00 cwt. ($66/mt or $60/nt), week-on-week, due to restricted buying patterns and thus, shortening lead times.
“No one thinks this has bottomed yet,” one source said. “Especially since we’re now coming up on the end of the year, which is synonymous with lessened buying activity and soft prices.”