US flat rolled prices have not officially moved since SteelOrbis' last report; however the price range appears to be narrowing.
Despite some domestic mills' efforts to increase their prices past the $55.00 cwt. ($1,213 /mt or $1,100 /nt) mark for hot rolled coil (HRC), it seems that the price spread is beginning to shrink, leaving the bottom of the price range to dominate the market. Spot prices for domestic HRC are now realistically seen at $53.00 cwt. to $54.50 cwt. ($1,168 /mt to $1,202 /mt or $1,060 /nt to $1,090 /nt) ex-mill Midwest. West Coast prices are approximately $3.00 cwt. ($66 /mt or $60 /nt) higher.
Buyers have seen more HRC availability in the last couple of weeks and a slight downturn in demand. There is no reason to panic, however, as nothing drastic is expected to happen in the market, but it seems that the market is finally leveling off. After months on end of huge increases announced by domestic mills, buyers may find relief in knowing the price rally may finally be over and that the market has seen its peak. If you talk to the mills however, they still appear to be pretty bullish.
Cold rolled coils (CRC) seem to be sharing the same fate, as mills are having more trouble selling at the higher end of the price spectrum. The price gap for domestic CRC has also tapered and CRC spot prices are now ranging from $58.00 cwt. to $60.00 cwt. ($1,279 /mt to $1,323 /mt or $1,160 /nt to $1,200 /nt) ex-mill Midwest.
For both HRC and CRC, large customers are commenting that they are seeing quick lead times at the domestic mills and availability is plentiful.
On the import side, there are not many HRC offers for the US; however, there have been reports of some Russian HRC tonnage that was recently booked. The Russian HRC offers were at approximately $56.00 cwt. ($1,235 /mt or $1,120 /nt). The tonnage is mainly 72" wide A36 grade HRC, a size that domestic producer Nucor does not produce and other domestic producers have an extra for.
As usual, there are some Chinese CRC offers available to the US. Offerings range from $59.00 cwt. to $61.00 cwt. ($1,301 /mt to $1,345 /mt or $1,180 /nt to $1,220 /nt) FOB loaded truck West Coast ports; however, as these prices are comparable or slightly higher than the domestic price, there are not as many takers.
Chinese offers are expected to decrease in the weeks to come in order to compete with the US domestic market price.