US domestic flats market in a lull

US domestic flat rolled spot prices are still holding steady despite two announced price increases. Although sources indicate that some customers have had to pay $5-$10/nt ($0.25-$0.50/cwt. or $5.51-$11.02/mt) more in the last week, on average, hot rolled coil (HRC) spot prices are still between $33.00-$35.00 ($728-$772/mt or $600-$700/nt) ex-Midwest mill, with cold rolled coil spots $5.00 cwt. ($110/mt or $100/nt) higher. While prices at the mill are stagnant, it's not from a lack of trying--most mills are actively quoting $35.00 cwt. ($772/mt or $700/nt) ex-mill for HRC on new orders. However, lead times remain as short as two to three weeks, and some buyers even believe the second price increase may have had a negative effect on market mentality: signifying more weakness in prices than mills want customers to believe.

In order to fill order books, SteelOrbis has heard of a few mills absorbing freight costs altogether. But most buyers are still holding high inventories, allowing them to delay, if not entirely avoid, making purchases in today's uncertain market. As for imports, there is little interest in uncompetitive Chinese CRC or Russian HRC offers, but Mexican mills have become more aggressive in the last week. Mexican HRC prices in the US are still between $33.00-$34.00 cwt. ($728-$750/mt or $660-$680/nt) DDP loaded truck delivered into Houston, but according to traders, prices are now closer to $33.00 cwt. than $34.00 cwt. and could drop slightly if the anemic activity persists.

**DDP loaded truck delivered into Houston