How much competition does US HRC have from offshore sources?

Friday, 26 August 2016 12:13:25 (GMT+3)   |   San Diego
US domestic hot rolled coil (HRC) spot market prices have softened by approximately $0.50 cwt. ($11/mt or $10/nt) since our last report a week ago, which brings the current average spot market price transaction range to $29.00-$30.50 cwt. ($639-$672/mt or $580-$610/nt), ex-Midwest mill, but a source close to SteelOrbis confirmed that at least one mini-mill booked an order “in the $28.00 to $28.50 cwt. ($616-627/mt)range” in recent days.

Some sources say they’re surprised that the slow, downward drift in US domestic flat rolled steel prices have continued, especially in light of recent, favorable final determinations in the antidumping/ countervailing duty cases.

Trader sources, however, say that although some mills in some countries are still out of the market, others are actively pursuing US orders.  “We thought maybe Japan might hop back into the mix and sign on as the importer of record so they could book some hot rolled, but at this point it’s starting to seem more and more unlikely,” one source said.
 
Another said his company has been receiving US import HRC offers from a Turkish steelmaker at $25.00 cwt.  ($551/mt or $500/nt), DDP loaded Truck in US Gulf coast ports; a third said he’s aware of offers for US import HRC from Korea at that same price point.

It’s still believed that US flats mills will announce a price increase shortly after Labor Day although the vast majority of market players agree any price increase announcement will be more about setting a floor than actually nudging the spot market upward.

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