US domestic HRC prices firming within current range

Although the most commonly reported spot price transaction range for US domestic hot rolled coil (HRC) has not wavered since our last report a week ago, still at approximately $33.00-$34.00 cwt. ($727-$750/mt or $660-$680/nt) ex-Midwest mill, sources close to SteelOrbis say that deals at the bottom of this range are becoming harder to come by.  “Order activity is consistent, and good,” according to one Midwest service center. This could bode well for an expected post-Labor Day price increase announcement, which is believed to push buyers for an additional $1.00 cwt. ($22/mt or $20/nt).

Mexican and Russian offerings have also held steady in the past two weeks, although political pressure to remove Russia’s suspension agreement and instead implement dumping margins is rumbling louder. Between that and other ongoing political situations in that region of the world, traders are increasingly wary of booking tons from Russian producers.