US domestic HRC prices have continued to soften since our last report a week ago, and sources close to SteelOrbis have said that mills’ aggressive scrap prices during this month’s buy cycle is indicative of where the market is heading.
This week’s domestic HRC prices are down $1.00 cwt. ($22/mt or $20/nt), week-over-week, and are now trending at $46-$49 cwt. ($1,014-$1,080/mt or $920-$980/nt) FOB mill, whereas spot market prices for CRC and HDG coil have remained within last week’s ranges.
Consequently, this week’s CRC prices are still trending at $57-$60 cwt. ($1,257-$1,323/mt or $1,140-$1,200/nt), FOB mill, while HDG prices have remained at $55-$57 cwt. ($1,213-$1,257/mt or $1,140-$1,100/nt), FOB mill. Sources have, however, indicated that “fewer and fewer” transactions are happening at the top end.
Lead times for HRC are trending at roughly 2-3 weeks, whereas lead times for CRC and HDG coil are being heard at 4-6 weeks.
Sources have also said that June settled scrap prices in the US, which in some regions, have settled down by as much as $60/gt from May settled levels, “seems to be a telltale sign of where they think prices are going.”