The most commonly reported spot price transaction range for US domestic hot rolled coil (HRC) has remained lateral for the second week in a row, which has many buyers and sellers thinking that the previously seen price firming trend has run out of steam.
As with last week, the average spot market transaction range is steady, at $19.50-$21.00 cwt. ($430-$463/mt or $390-$420/nt), ex-Midwest mill.
“This all comes down to cheap oil prices because the pipe mills aren’t buying anything from HRC producers,” one source said. “In the absence of some major and unforeseen jump in scrap prices, hot rolled is still going to have some challenges.”