Flat rolled buying activity in the US has slowed even further in the last couple weeks, with both domestic and import offers depreciating further.
Buyers and sellers alike say that business has "come to a halt" in reaction to the soft demand, weakening price environment and deepening financial crisis.
"It's really a buyer's market right now," a flat rolled trader told SteelOrbis this week. "It's a mentality of 'who is the cheapest'."
Domestic mills are also facing some cancellations and renegotiations as buyers reconsider their purchases during this weak time, and most new business is currently done on a "bid basis."
Domestic spot prices have also weakened in the last week. Most hot rolled coil (HRC) offers are still in a wide range of $45.00 cwt. to $50.00 cwt. ($992 /mt to $1,102 /mt or $900 /nt to $1,000 /nt) ex-mill Midwest; however, buyers say that there are some spot deals starting to appear that are lower than $45.00 cwt.
Meanwhile, the most competitive cold rolled coil (CRC) spot offers have dropped by $2.00 cwt. ($44 /mt or $40 /nt) in the last week, with some offers now as low as $48.00 cwt. ($1,058 /mt or $960 /nt), and some contract tons that have been making their way into the spot market that are even slightly lower than $48.00 cwt. With the market falling so fast, though, there is a wide range in the prices being offered - There are still some offers as high as $52.00 cwt. ($1,146 /mt or $1,040 /nt) ex-mill.
On the import side, flat rolled offers continue to decline as well.CRC offers from China have remained stable in the last week, though CRC offers from India have dropped by about $6.00 cwt. in the last week, with most Indian offers now ranging from $52.00 cwt. to $54.00 cwt. ($1,146 /mt to $1,191 /mt or $1,040 /nt to $1,080 /nt) duty-paid, FOB loaded truck, in US Gulf ports and Chinese offers still ranging from $52.00 cwt. to $54.00 cwt. duty-paid, FOB loaded truck, in US West Coast ports. New offers from both sources continue to trend down.
With Mexico's domestic market slowing down, Mexican mills are now offering some CRC tonnage to the US at a range of $48.00 cwt. to $50.00 cwt. ($1,058 /mt to $1,102 /mt or $960 /n to $1,000 /nt) at the border.
Unfortunately, there doesn't seem to be a light at the end of the tunnel in sight yet for the current market fallout -- Both domestically and for imports, flat rolled pricing in the US is expected to decline through year-end.