The average spot market price range for US domestic HRC and CRC coil has been trending upward for the past 7 weeks, sources note, adding that the uptrend is a welcome change from the steady declines seen in 2022.
This week, US HRC prices have firmed by $1.00 cwt. ($22/mt or $20/nt), to $36-$38 cwt. ($794-$838/mt or $720-$760/nt), FOB mill. Domestic hot rolled coil prices are up by approximately $6 cwt. ($132/mt or $120/nt) from their low-point in early December.
US domestic CRC prices are also up by $1.00 cwt. week-over-week and are now trending at approximately $46.50-$48.50 cwt. ($1,025-$1,069/mt or $930-$970/nt), FOB mill. This week’s CRC prices reflect an approximate $4 cwt ($88/mt or $80/nt) increase from their low point in late Q4 2022.
Sources continue to report that while there’s no real reason that prices should continue to trend upward, especially in that lead times are still short and mills’ capacity utilization rates remain below the historical norm, there’s also no reason that they should shift course and trend back down.
“I think we’re in a place where the market may be reaching its equilibrium,” a source said. “I don’t imagine that anyone is in a rush to stock their warehouses because there’s still a bit of downside risk, but I also think we won’t see any huge swing in either direction for the foreseeable future.”