US domestic HRC prices have continued to drift downward since our last report a week ago. Current spot market prices have softened by $1.50 cwt. ($33/mt or $30/nt) on the bottom end in the last week, which brings the current average spot market price transaction range to $40.00-$43.00 cwt. ($882-$948/mt or $800-$860/nt), ex-mill.
During the current week, Nucor, US Steel and ArcelorMittal USA have announced they would be raising prices by a minimum of $2.00 cwt. ($44/mt or $40/nt), effective with all new orders; Many believe the announcements are less about raising prices and more about preventing further spot market price erosion.
Last week, SteelOrbis reported that buyers were mixed on their feelings as to whether the rumored price increase would be accepted. Some pointed to still-short lead times, while others noted that service and distribution centers have been drawing down their inventories, and that if it’s believed that prices are about to rebound, this could spur some panic buying, which could help firm prices in the short term.
Sources close to SteelOrbis have long speculated that prices would drift down to $40.00 cwt. ($882/mt or $800/nt) before stabilizing, but they agree that it’s still too soon to know whether this week’s price increase will gain acceptance.