US domestic flats prices fall substantially amid mounting competition

Monday, 05 March 2012 02:21:42 (GMT+3)   |  

US domestic hot rolled coil (HRC) and cold rolled coil (CRC) spot prices have continued to move lower again this week. As with previous weeks, demand remains stable but with production levels inching up on a week-on-week basis--according to data from the American Iron and Steel Institute (AISI)--lead times are contracting, and many domestic buyers are waiting until the last minute to place orders. Additionally, sources tell SteelOrbis that a few mills are out desperately seeking orders, and are quick to cut prices to do so, driving the whole market down. HRC spot prices have fallen another $1.00 cwt. ($22/mt or $20/nt) on the low end since last week to $34.00-$36.00 cwt. ($750-$794/mt or $680-$720/nt) ex-Midwest mill. CRC spot prices have fallen more drastically, and are now between $38.00-$40.00 cwt. ($838-$882/mt or $760-$800/nt) ex-Midwest mill, compared to $40.00-$41.00 cwt. ($882-$904/mt or $800-$820/nt) ex-mill a week ago.

Meanwhile, Chinese mills have rescinded a portion of their $1.00 cwt. increase on CRC offer prices to the US a week ago, due to little US-buyer interest. Mexican mills are also reportedly striking deals for some customers in Gulf Coast regions but aren't widely offering to the US at the moment. Russian HRC offer prices are neutral again this week at $32.00-$33.00 cwt. ($705-$728/mt or $640-$660/nt) DDP loaded truck in US Gulf ports--unsellable according to trader sources.

  Cwt. Metric Ton (mt) Net ton (nt) Change from last week
US domestic        
HRC $34.00-$36.00 $750-$794 $680-$720 ↓ $1.00 cwt. on low end
CRC $38.00-$40.00 $838-$882 $760-$800 ↓ $2.00 cwt. on low end
         
China*        
CRC $39.50-$40.50 $871-$893 $790-$810 ↓ $0.50 cwt.
         
Mexico**        
HRC $33.00-$34.00 $728-$750 $660-$680 ↓ $1.00 cwt. 
CRC $38.50-$39.50 $849-$871 $770-$790 newly offered
         
Russia*        
HRC $32.00-$33.00 $705-$728 $640-$660 neutral
*DDP loaded truck in US Gulf ports

**DDP loaded truck delivered into Houston


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