US domestic flats prices to continue downtrend

As more and more deals emerge in the US domestic flats market, hot rolled coil (HRC) and cold rolled coil (CRC) spot prices are drifting down. While the spot price ranges for HRC and CRC--$36.00-$37.00 cwt. ($794-$816/mt or $720-$740/nt) and $40.00-$42.00 cwt. ($882-$926/mt or $800-$840/nt), respectively, ex-Midwest  mill--haven't changed, spot prices are trending toward the lower end of the ranges and are likely to decline by next week. Already, sources have informed SteelOrbis of some HRC buying activity at prices as low as $35.00 cwt. ($772/mt or $700/nt). Additionally, now that US buying activity has slowed, some mills looking to fill order books and move material have also reentered the export market and are looking for outside destinations.

As for imports, futures offers from offshore aren't low enough to interest US buyers, although Russian HRC offer prices to the US are down $1.50 cwt. ($33/mt or $30/nt) from last week. Korean HRC offer prices in the range of $36.00-$37.00 cwt. ($794-$816/mt or $720-$740/nt) DDP loaded truck in US West Coast ports are attracting some activity, but interest has substantially waned in the last couple weeks. Meanwhile, Mexico, which had been focusing on sending HRC downstream for more value-added products in its domestic market, or offering API and other higher-grade material to the US, has reentered the US market and is offering base HRC grades in the range of $34.00-$35.00 cwt. ($750-$772/mt or $680-$700/nt) DDP loaded truck delivered into Houston. Those prices are likely to fall soon as well, however, mirroring downticks in US domestic spot prices.

**DDP loaded truck in US West Coast ports

***DDP loaded truck delivered into Houston