Is the US HRC market finally nearing bottom?

Friday, 27 February 2015 10:07:59 (GMT+3)   |   San Diego
       

Spot prices within the US domestic hot rolled coil (HRC) market have ticked down another notch since our last report a week ago; many are starting to question whether the market is at, or near bottom.   Lead times are still relatively short, according to SteelOrbis sources, and that “no one is buying any import at this time unless they’re closer to a port.”   Although offshore producers continue to be aggressive with their offer prices, “there’s just no guarantee the US domestic market won’t falter more before this thing is over.”

Today, the most commonly reported spot price transaction range for US domestic hot rolled coil has ticked down another $1.00 cwt. ($22/mt or $20/nt) since our last report a week ago bringing the new average range to $24-$26 cwt. ($529-$573/mt or $480-$500/nt), ex-Midwest mill.  Scrap prices in the Ohio Valley / Chicago areas are forecast to settle down again for March buys before showing signs of stabilization, which means HRC prices could soften a bit more before leveling off.

 Cwt.Metric Ton (mt)Net ton (nt)Change from last week
US domestic    
Ex-Midwest mill    
HRC$24-$26$529-$573$480-$520down $1.00 cwt. 
     
Turkey*    
HRC$25-$26$551-$573$500-$520down $1.00 cwt. on the top end
     
Australia*    
HRC$25-$26$551-$573$500-$520down $1.00 cwt. on the top end
     
Brazil*    
HRC$25-$26$551-$573$500-$520down $1.00 cwt. on the top end
     
*DDP loaded truck US Gulf Coast ports 

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