The October downtrend for US domestic scrap prices has finally started to spill into the US domestic hot rolled coil (HRC) market, as the most commonly reported spot price transaction range has softened by approximately $0.50 cwt. ($11/mt or $10/nt) on the top end since our last report a week ago. The new average ex-Midwest mill transaction range now falls between $21.00-$21.50 cwt. ($463-$474/mt or $420-$430/nt), although sources close to SteelOrbis have confirmed that buyers who are looking to book significant tons are able to get deals below $20.00 cwt. ($441/mt or $400/nt).
Inventory overhang continues to be among the market’s greatest challenges, according to one Texas-based source. Service and distribution centers have also confirmed that deep discounts are being offered to end-user customers “just to help move excess stock out of the warehouse.”