US domestic flat rolled prices continue to deteriorate

As lead times shrink and spot market buying activity remains minimal, US domestic flat rolled steel spot prices have continued to decline in the past week. Mills were only able to attain a small portion of their late-February $2.50 cwt. ($55/mt or $50/nt) price increase, and have tried not to reverse those gains and let hot rolled coil (HRC) spots slip below $30.00 cwt. ($661-$683/mt or $600-$620/nt) ex-Midwest mill again. For now, those efforts have been mostly successful and spot prices are unchanged again in the last week in the range of $30.00-$31.00 cwt. ($661-$683/mt or $600-$620/nt) ex-Midwest mill, with the majority of activity taking place on the lower end of the range.

However, sources tell SteelOrbis that mills could be persuaded to lower prices for a large enough order, and rumblings of sub-$30.00 cwt. deals have already been heard as two to three week lead times on HRC are "more two than three," according to service center sources, who report orders delivered earlier than anticipated as mill orders books remain weak. With purchasing activity minimal, the main factor preventing a significant downward slide in spot prices is that demand levels remain relatively stable and import offers are having little impact on the US domestic market. Chinese cold rolled coil (CRC) offer prices are still too high for most buyers to stray away from US domestic material. However, Chinese import offer prices are on the decline and could drop to "workable" levels in the next couple weeks according to traders. 

*DDP loaded truck in US Gulf ports