US flat rolled spot prices continue their descent

Despite one mill's attempted price increase, US domestic flat rolled prices have fallen after holding steady for a couple weeks. AK Steel's $2.00 cwt. ($44.00/mt or $40.00/nt) price increase on May 9 was not received well, according to SteelOrbis sources, and many have dismissed the increase amid heavy buyer inventories, approximately two week lead times on hot rolled coil (HRC), and continued high domestic production levels. Although there are rumblings other mills may follow AK Steel's lead, the success of the increases remains in doubt, at least until inventories are reduced or lead times push out.

HRC spot prices have fallen $1.00 cwt. ($22/mt or $20/nt) in the last week to about $32.00-$33.00 ($705-$728/mt or $640-$660/nt) ex-Midwest mill with select deals heard as low as $31.50 cwt. ($694/mt or $630/nt) ex-mill. Cold rolled coil (CRC) spot prices are still between $38.00-$39.00 cwt. ($838-$860/mt or $760-$780/nt) ex-mill, largely because the market is less flooded with spot availability, but with HRC prices falling, CRC is likely to follow suit. A least for the next couple weeks, little is stopping the downward momentum, preventing most US buyers from even considering imports. However, according to trader sources, Chinese mills have shown more willingness to negotiate as of late, after keeping prices little changed over the last four months.

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