Spot market prices for US hot rolled coil (HRC) are inching closer to mill asking prices, while the upper range of cold rolled coil (CRC) spot offers have approached announced mill prices.
US domestic spot prices for HRC have increased about $0.50 cwt. ($11/mt or $10/nt) since last week, with offers now ranging from approximately $29.50 cwt. to $30.50 cwt. ($650/mt to $672/mt or $590/nt to $610/nt) ex-Midwest mills. The current momentum for HRC has moved spot offers even closer to the mill March list prices, at approximately$31.50 cwt. ($694/mt or $630/nt) ex-Midwest mills. Flat rolled demand remains lethargic, but HRC demand is still gaining strength from the slight uptick in the domestic pipe and tube industries.
Meanwhile, domestic CRC spot prices are also increasing, up $1.00 cwt. ($22/mt or $20/nt) from last week. Most offers currently range from $35.00 cwt. to $36.00 cwt. ($772/mt to $794/mt or $700/nt to $720/nt) ex-Midwest mills. The upper end of the range matches is just about at mill announced March price of approximately $36.00 cwt. ($794/mt or $720/nt) ex-Midwest mills.
While domestic flat rolled prices have continued their positive momentum, mills are starting to have a little more difficulty filling their order books. Buyers have been extra cautious lately, and getting a bit wary that prices are climbing too high without any real demand for support.
On the import side, booking activity remains sluggish. Despite rising domestic prices, US mills are still willing to offer deals, making even low import prices with long lead times much less attractive to skeptical buyers.
Mexican offers for HRC have remained neutral from last week, hovering in the $29.00 cwt. to $30.00 cwt. range ($639/mt to $661/mt or $580/nt to $600/nt) delivered to US border states. However, SteelOrbis has learned that Mexican offers for HRC and CRC could substantially increase over this next week.
Meanwhile, Russian HRC offers have also trended neutral from last week, staying generally within $28.00 cwt. to $29.00 cwt. ($617/mt to $639/mt or $560/nt to $580/nt) duty-paid, FOB loaded truck in US Gulf ports; however, their offers are also likely to jump up a bit in the beginning of February. As with Mexican prices, Russian prices are expected to climb in the first week of February, but larger companies looking for significant tonnage may still be able to strike a deal here and there.
As for import CRC, not much has changed since last week. Brazil is still offering at about $34.00 cwt. and higher ($750/mt or $680/nt) duty-paid, FOB loaded truck in US Gulf ports, while Chinese offers are at $37.00 cwt. and higher ($816/mt or $740/nt). Russian offers are also floating at about $34.00 cwt. to $35.00 cwt. ($750/mt to $772/mt or $680/nt to $700/nt) duty-paid, FOB loaded truck in US Gulf ports, but are becoming more elusive to find.