US domestic and import flat rolled spot prices dwindle

Raw material prices have recently dropped in certain overseas markets, and as a result, some import flat rolled offer prices to the US have started to soften. This week Chinese and Indian cold rolled coil (CRC) offer prices to the US slipped by $1.00 cwt. ($22/mt  or $22/nt), and sources tell SteelOrbis that the downward trend is expected to continue, especially considering how much of a share China’s steel production has in the global market.  

 

Meanwhile, the US domestic market is entering its slowest demand quarter, evidenced by a weakening in hot rolled coil (HRC) spot prices, which this week slipped by $0.50 cwt. ($11/mt or $10/nt) ex-Midwest mill. The dip in prices is also being spurred by a few domestic mills that are finally getting back up to speed after being backed up on orders in recent months. The price decline is expected to continue, so most flat roll buyers are sitting tight to watch just how low those prices will go. Sources tell SteelOrbis that in an effort to turn the tide, some domestic mills are now electing to shut down furnaces for their annual maintenance, hoping that a dip in production will help lift those prices back up.