US domestic flats market continues sideways trend

As seen in previous weeks, the largest challenge continues to relate to mills' production levels- which remain above market demand, and with lead times for HRC and CRC having once again shortened, raising prices will continue to be difficult.  At current,  HRC lead times range between two and three weeks, and CRC lead times range between three and four weeks.

"Until lead times lengthen out to about three months, getting prices up are going to be a challenge," commented one buyer.  "The economy is still shaky, money is still tight, mills need orders, and buyers know that money talks."

That having been said, it's also been strongly indicated that while the ranges below represent the most commonly seen ranges for both HRC and CRC, that it is believed that if a buyer is able to dangle an order for significant tonnage, that negotiating transaction ranges slightly below those reported would not be too difficult.  However, the definition of "significant tonnage" seems to be changing, because demand for flats products, while remaining steady, is still less than demand seen in previous years.

For now, however, with neutral demand brings neutral prices, meaning the forecasted trend for HRC to CRC will remain neutral, with order activity anticipated to remain light due to stronger inventory positions taken toward the end of last month.

Shifting focus to imports, previously reported offerings for HRC and CRC have also remained neutral.  It's rumored, though, that pricing for Brazilian CRC may begin to tick downward, as Brazilian mills are making a strong push to sell overseas due to lessened domestic demand due to a recent influx of imports.

*Mexican offers are FOB loaded truck US border states.

**Chinese and Brazilian offerings are duty-paid FOB loaded truck, US Gulf ports