US domestic flats pricing rocks steady

Friday, 24 September 2010 09:58:34 (GMT+3)   |  
With mills' hopes of upward price movement for US domestic flats products slowly fading from existence,  mills and service centers are thankful that the previously seen sideways trend in spot pricing has continued for another week, as opposed to slipping backward.

However, just because transaction ranges have trended sideways, that's not to say that transactions more toward the lower end of that range are not becoming more prevalent.  And as reported last week, it's strongly believed that if an order for significant tonnage is on the table, deals slightly below the published ranges below could be negotiated. 

"It's the same story of over production and lackluster demand," commented a Southeast service center. "Mills just keep rolling and rolling and no one wants to be the first to cut back."

If you need to buy coils, delivery remains relatively swift.  Lead times have trended neutral since our last report a week ago and continue to be reported in the range of two and three weeks for HRC and three to four weeks for CRC.

That reality, according to buyers, is skewing the market-- although mills are still hopeful to get prices up, savvy buyers know that order books are soft and that coils are readily available, which means that trying to move toward selling at a premium, in the current market conditions, is more of a pipe dream than an achievable goal.

For now, the trend for HRC and CRC will remain sideways, with lighter than desired order activity anticipated through the remainder of the month. 

Looking to imports, previously reported ranges have for the most part, remained neutral.  The only notable change from our last report is a $1.00 cwt. ($22/mt or $20/nt) softening of spot prices for Mexican HRC, which now brings offerings out of Mexico on par with those seen domestically in the US.  It's also being reported that China, while still offering, has "priced themselves out of the market", meaning Chinese offerings are not being readily entertained.

  Cwt. Metric Ton (mt) Net ton (nt) Change from last week
US domestic        
HRC  $28-29 $617 - $639 $560-$580 neutral
CRC $33-$34 $728 - $772 $680-$700 neutral
         
Mexican        
HRC  $28-29 $617 - $639 $560-$580 ↓$1.00 cwt. 
CRC --- --- ---- ----
         
Chinese        
CRC $38-39 $838 - $860 $760-$780 neutral
         
Brazilian        
CRC $34.50-$35.50 $761-$783 $690-$710 neutral

*Mexican offers are FOB loaded truck US border states.

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

Marketplace Offers

Hot Rolled Coil

Thickness 1.5 - 25 mm
Width 1,000 - 1,500 mm
Coil  R
 
Tedarikçi DAVUTOĞLU METAL MAK. İNŞ. SAN. TİC. LTD ŞTİ.
View Offer

Cold Rolled Coil

Thickness 0.4 - 2.5 mm
Width 1,000 - 1,500 mm
Coil  R
 
Tedarikçi DAVUTOĞLU METAL MAK. İNŞ. SAN. TİC. LTD ŞTİ.
View Offer

Hot Rolled Coil

Thickness 0.8 - 5 mm
Width 1,150 - 1,850 mm
Coil  R
 
Tedarikçi SAMBHV SPONGE POWER LIMITED
View Offer

Similar articles

US flat rolled prices register another substantial week-on-week drop

US flats market appears far from bottom as prices continue to drop

US domestic flats prices continue their rapid decline

US domestic flats prices begin to soften

US import flat rolled prices continue to drop

Import offers gaining some traction as US flats spots stagnate

US domestic flat rolled market continues to firm

Mills grow bullish as US flats prices continue to firm

US flats prices begin to firm following two announced increases

US flats mills begin second round of increases