US domestic spot prices for hot rolled coil (HRC) and cold rolled coil (CRC) have both softened, but HRC prices are falling at a more rapid rate.
Since last week, US domestic HRC spot prices have fallen $1.00 cwt. ($22/mt or $20/nt) to the range of $36.00-$37.00 cwt. ($794-$816/mt or $720-$740/nt) ex-Midwest mill. While offers below $37.00 cwt. have been available since early June for larger orders, sources indicate even smaller buyers are now finding little resistance from domestic mills in booking HRC for $36.00 cwt. Sub-$36.00 cwt. spot prices have also emerged over the last week as order activity has been anemic, and overcapacity continues to make HRC availability abundant. CRC spot prices have fallen as well, but are only down $0.50 cwt. ($11/mt or $10/nt) in the last week to $42.50-$43.50 cwt. ($937-$959/mt or $850-$870/nt) ex-Midwest mill.
With July order books in the Midwest--especially for HRC--filling up sluggishly and early July delivery still available at many domestic mills, flat-rolled spot prices are poised to continue falling next month. On the other hand, flats order books at West Coast mills are close to being filled for July with HRC at $41.00-$42.00 cwt. ($904-$926/mt or $820-$840/nt) and CRC $46.00-$47.00 cwt. ($1,014-$1,036/mt or $920-$940/nt), both ex-mill. Demand is only mediocre on the West Coast, however, and West Coast mills may not follow through with the predicted price hike for August. While it is too early to tell just yet, mills may instead attempt another neutral move in August, followed by an increase for September.
Mills on the West Coast are already battling low-priced imports from Korea and China, and one West Coast trader told SteelOrbis that if West Coast flats mills did try for higher prices in August, it would make already appealing imports even more so. Chinese CRC prices are currently $4.00 cwt. ($88/mt or $80/nt) below US West Coast CRC spot prices at $42.00-$43.00 cwt. ($926-$948/mt or $840-$860/nt) DDP loaded truck in US West Coast ports, with the possibility of falling further in July due to a weak flats market in China. Korean HRC prices have been heard as low as $38.00-$39.00 cwt. ($838-$860/mt or $760-$780/nt) DDP loaded truck in US West Coast ports.
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic | ||||
| HRC | $36.00-$37.00 | $794-$816 | $720-$740 | ↓ $1.00 cwt. |
| CRC | $42.50-$43.50 | $937-$959 | $850-$870 | ↓ $0.50 cwt. |
| Mexico* | ||||
| HRC | $35.00-$36.00 | $772-$794 | $700-$720 | neutral |
| CRC | $42.00-$43.00 | $926-$948 | $840-$860 | ↓ $1.00 cwt. |
| China** | ||||
| CRC | $42.00-$43.00 | $926-$948 | $840-$860 | neutral |
| Korea** | ||||
| HRC | $38.00-$39.00 | $838-$860 | $760-$780 | newly offered |
**DDP loaded truck in US West Coast ports