A sideways to possibly strong-sideways forecast within some regions of the US domestic scrap market could bode well for US domestic hot rolled coil (HRC) spot prices; the downtrend seen since the beginning of 2015 may finally be at its end.
Prices have held steady since our last report a week ago, with most transactions concluding at in the approximate range of $23-$25 cwt. ($507-$551/mt or $460-$500/nt), ex-Midwest mill. Smaller buyers continue to pay a higher price, according to sources, with deals toward the lower end of that range being reserved for those interested in booking significant tonnages.
In terms of futures, other SteelOrbis sources say everyone is exercising caution. “There isn’t a clear-cut cost savings advantage in booking offshore right now,” according to the source. “Domestic lead times are short and since the prices are comparable, there aren’t too many buyers who are looking to take a gamble on futures.”
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic | ||||
| Ex-Midwest mill | ||||
| HRC | $23-$25 | $507-$551 | $460-$500 | neutral with rumors of deals |
| Turkey* | ||||
| HRC | $24-$25 | $529-$551 | $480-$500 | neutral with rumors of deals |
| Australia* | ||||
| HRC | $24-$25 | $529-$551 | $480-$500 | neutral with rumors of deals |
| Brazil* | ||||
| HRC | $23-$25 | $507-$551 | $460-$500 | neutral with rumors of deals |
| *DDP loaded truck US Gulf Coast ports | ||||