US domestic flat rolled prices unwavering

It has been a quiet week for the US domestic flat rolled market, but both prices and order activity have remained stable. The summer slowdown appears to be in full effect--many have taken vacations or have vacations planned, and demand levels are steady but unexciting. Mills have not been heard making deals even for larger orders, and the bulk of hot rolled coil (HRC) spot market activity continues to take place at upwards of $32.00 cwt. ($705-$719/mt or $640-$650/nt) ex-Midwest mill. Spot prices are still about $0.50-$1.00 cwt. ($11-$22/mt or $10-$20/nt) shy of official mill prices following the latest round of price increases, but mills appear content to continue taking orders at existing spot prices.

But the current stability is making some nervous, rather than enticing customers to stock up on material now. While mills have had no trouble filling August and September order books with higher-priced coil, October order books continue to be a concern given traditional end-of-the-year uncertainty, an anticipated increase in import arrivals--albeit small--and buyers' ongoing preference to keep inventories lean. Futures, meanwhile, aren't garnering much attention from US buyers right now, although there is no shortage of option. For the most part, US customers are sticking to domestic material, with those situated near US Gulf ports occasionally supplementing with Mexican HRC, which has remained at $30.00-$31.00 cwt. ($661-$683/mt or $600-$620/nt) DDP loaded truck delivered into Houston. There have been rumors of a few larger sub-$30.00 cwt. deals being made, but they are not widespread.