Earlier this week, the US Department of Commerce vowed to look into whether US domestic steel mills are taking advantage of their customers by raising domestic spot market by an unfair rate. For comparison, in January 2018, US HRC spot market prices were trending at $31-$33 cwt. ($683-$728/mt or $620-$660/nt), ex-Midwest mill, while today, prices are trending between $44-$45 cwt. ($970-$992/mt or $880-$900/nt) ex-mill.
US HRC prices have risen far beyond the 25 percent import tariff that has been imposed on offshore steelmakers. Industry sources have said they believe the US DOC announcement will dampen any planned price increases, and some believe it could lead to price softening. All SteelOrbis sources agree that previous expectations of US HRC climbing as high as $50 cwt. ($1102/mt or $1000/nt) ex-mill by the end of the summer are no longer in play.
Looking offshore, HRC from a number of offshore sources is still being offered in the US domestic market at price points that are between $2-$3 cwt. ($44-$66/mt or $40-$60/nt) below US spot market prices. As with last week, some traders are saying that there are a handful of Turkish offers that are coming in at a slightly better rate.