The two-week stall in price levels within the US domestic hot rolled coil (HRC) market has officially come to its end, as the most commonly reported spot price transaction range has widened by about $1.00 cwt. ($22/mt or $20/nt) on the low end. Previously reported “deals” have become more and more commonplace, according to SteelOrbis sources, which have contributed to the widening of the span.
The big question, though, is whether US domestic HRC has reached its “bottom of bottoms,” now that prices are at approximately $22.00-$24.00 cwt. ($485-$529/mt or $440-$480/nt) ex-Midwest mill. Futures offers from Turkey and Australia are also down, according to trader sources, in order to compete with US offer prices. Brazilian producers continue to be aggressive, according to other sources, and have started to offer a handful of deals below their average transaction range.
It’s been heard that US mills are just itching to roll out a $1.00-$1.50 cwt. price increase at the first given opportunity; if scrap prices trend at sideways to strong sideways next month, that announcement could be just around the corner. It’s also rumored that the increase could come when and if trade cases are filed against offshore producers of cold rolled coil (CRC) and/or hot dipped galvanized (HDG) producers.
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic | ||||
| Ex-Midwest mill | ||||
| HRC | $22-$24 | $485-$529 | $440-$480 | down $1.00 cwt. on the low end. |
| Turkey* | ||||
| HRC | $22-$24 | $485-$529 | $440-$480 | down $1.00 cwt. on the low end. |
| Australia* | ||||
| HRC | $22-$24 | $485-$529 | $440-$480 | down $1.00 cwt. on the low end. |
| Brazil* | ||||
| HRC | $22-$23 | $485-$507 | $440-$460 | mostly neutral with rumors of deals |
| *DDP loaded truck US Gulf Coast ports | ||||