Sluggish order activity, short lead times and high inventory levels continue to impact the US domestic HRC market, as sources close to SteelOrbis report that deals slightly below the average US domestic hot rolled coil (HRC) transaction range of $21-$22 cwt. ($463-$485/mt or $420-$440/nt), ex-Midwest mill are now available to large buyers. “The market is soft, there’s no question about it,” according to one Midwest-based source.
“There’s still a lot of inventory that needs to be worked through and I just don’t see any major changes in the market until that starts to happen.” Service and distribution center sources have reported similar challenges, and have said that in-stock HRC is being sold to end-users at prices that are below replacement cost.