Hesitant purchasing activity drives US flats prices lower

US domestic flat rolled spot prices have continued to move lower over the last week as some mills’ discounted deals are becoming more widespread. Sources tell SteelOrbis that for the most part, domestic mills aren’t offering many deals as order books remain decent. However, many buyers have slowed their purchases substantially due to expectations that prices will fall further, especially when large volumes of Russian and Korean hot rolled coil (HRC) and Chinese cold rolled coil (CRC) imports arrive into the US over the next four to six weeks. As a result, a few mills’ lighter-than-expected March order books--and therefore lower prices--have translated to another $1.00 cwt. ($22/mt or $20/nt) drop on the high end in HRC and CRC spot prices from last week.

But while US domestic spot prices have fallen, and are likely to remain soft for at least a couple more weeks (although no big drops in prices are predicted), Chinese mills have increased their flat rolled export prices to the US across the board. Chinese CRC offer prices to the US are up $1.00 cwt. since last week to $40.00-$41.00 cwt. ($860-$882/mt or $780-$800/nt) DDP loaded truck in US Gulf ports. Trader sources have indicated that Chinese mills would be lenient with the recent price increase for the right order, but with Chinese offer prices slated for June delivery if not later--and almost identical to current US domestic CRC spot prices--interest is minimal.

**DDP loaded truck delivered into Houston