The most commonly reported spot price transaction range for US domestic hot rolled coil (HRC) may have held steady for the third week in a row, at approximately $19.50-$21.00 cwt. ($430-$463/mt or $390-$420/nt), ex-Midwest mill, but many question whether the forecast $10/gt ($10.16/mt) downtrend for March scrap prices will hurt the US HRC spot market.
“HRC is currently the weakest of all the flats products,” sources note, citing weak, if “nearly non-existent” order activity from US domestic pipe mills, who have seen their orders fall off due to lackluster end-use demand out of the drilling sector. “When it comes to hot rolled people are only buying what they need and they’re not in any rush to stock up anything because everyone is afraid that what they buy today will be worth less tomorrow.”