Spot market prices for US domestic hot and cold rolled coil have softened once again, with sources noting widespread belief that the market is close to reaching the bottom.
“Given energy costs, and the fact that scrap prices seem to have finally bottomed out, the general belief is that the market is at or near the bottom,” a source said. “I don’t think we’re at the bottom yet but I also don’t think we’re too far away from it."
The official spot market price range for US domestic HRC shifted down to $39-$41 cwt. ($860-$904/mt or $780-$820/nt), FOB mill, against $40.50-$41.50 cwt. ($893-$915/mt or $810-$830/nt), FOB mill, a week ago.
CRC prices are also down week-over-week. Current prices are trending at $57-$59 cwt. ($1,257-$1,301/mt or $1,140-$1,180/nt), FOB mill, against $60-$62 cwt. ($1,323-$1,367/mt or $1,200-$1,240/nt), FOB mill, a week ago.
Lead times for HRC are hovering at 3-4 weeks, sources confirmed, adding that lead times for US CRC are trending at 6 weeks, “give or take.”
“What we’re seeing with sheet prices is that they’re no longer based on [bull feces], and prices are trending back toward where they need to be,” another source said.
A final source agreed. “The markets got all messed up during COVID, and then just around the time we thought things were settling back down, Russia invaded Ukraine and that thew another wrench into things. But at this point, as long as all of the chaos is behind us, I think we’ll see things stabilize and the markets will go back to normal.”