Are US HRC prices still vulnerable to correction?

Friday, 09 September 2016 19:52:16 (GMT+3)   |   San Diego
       

Sources close to SteelOrbis have reported that while the average spot price range for US domestic hot rolled coil (HRC) has remained sideways in the past week, at approximately $29-$30 cwt. ($639-$661/mt or $580-$600/nt), ex-Midwest mill, but it’s still believed that buyers who are wanting to book significant tonnages can “easily get deals closer to $28.00 cwt. ($617/mt or $560/nt), if not slightly below that.”

And while it was largely expected that US domestic flat rolled steel mills would announce a price increase after the Labor Day holiday, which many believed would be “more about drawing a line and setting a floor than actually moving the needle in an upward direction,” mills have yet to announce.

“I wouldn’t be surprised if things continued to slip into the fourth quarter,” another source said.

In terms of offshore offers, US import HRC from Korea and Turkey are still being heard at approximately $25.00 cwt.  ($551/mt or $500/nt), DDP loaded Truck in US Gulf coast ports.  Offer prices for US import HRC from Mexico are also still being heard at that same price point.


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