As predicted in our last report a week ago, US domestic flat rolled spot prices have fallen again. Demand levels are strengthening and sources tell SteelOrbis that strong agricultural, OEM, and especially automotive demand has resulted in strong order books for a number integrated mills. Even so, mill production rates continue to increase and some mills' extremely short lead times (as short as three to four weeks on hot rolled coil) has pushed HRC spot prices down $1.00 cwt. ($22/mt or $20/nt) on the low end in the last week to $35.00-$37.00 cwt. ($772-$816/mt or $700-$740/nt) ex- Midwest mill. Cold rolled coil (CRC) spot prices are still $40.00-$42.00 cwt. ($882-$926/mt or $800-$840/nt) ex- Midwest mill, as they were a week ago, but that range is trending downward and is poised to drop by next week.
Looking offshore, with the exception of some Korean HRC being booked on the West Coast, and Mexico still collecting some orders from US customers situated near Houston ports, futures bookings are light. While Mexico is striking deals on a case by case basis, other import sources aren't willing to negotiate their offer prices down enough to entice US buyers. Accordingly, trader sources indicate that futures will likely continue to be a hard sell for at least another few weeks, if not longer.
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic | ||||
| HRC | $35.00-$37.00 | $772-$816 | $700-$740 | ↓ $1.00 cwt. on low end |
| CRC | $40.00-$42.00 | $882-$926 | $800-$840 | neutral |
| China* | ||||
| CRC | $39.00-$40.00 | $860-$882 | $780-$800 | neutral |
| Russia* | ||||
| HRC | $32.00-$33.00 | $705-$728 | $640-$660 | neutral |
| Korea** | ||||
| HRC | $36.00-$37.00 | $794-$816 | $720-$740 | neutral |
| Mexico*** | ||||
| HRC | $34.00-$35.00 | $750-$772 | $680-$700 | neutral |
**DDP loaded truck in US West Coast ports
***DDP loaded truck delivered into Houston