US domestic flat-rolled spot prices have continued their weeks-long neutral trend, but while prices are on the verge of softening, any decline isn't likely to be substantial.
On the US West Coast, mills recently opened order books for July delivery, rolling over June prices of $41.00-$42.00 cwt. ($904-$926/mt or $820-$840/nt) ex-mill for hot rolled coil (HRC) and $46.00-$47.00 cwt. ($1,014-$1,036/mt or $920-$940/nt) ex-mill for cold rolled coil (CRC) after dropping prices $4.00 cwt. ($88/mt or $80/nt) for June. However, one West Coast distributor informed SteelOrbis that at least one West Coast flats mill is mulling a hike for August on the basis of a predicted $10-$20/lt increase in busheling scrap prices next month. The possibility of the increase announcement actually propping up spot prices looks to be unlikely at the moment--West Coast buyers have dramatically slowed their spot purchasing activity in the last few weeks, and a pickup doesn't look to be in the market's immediate future.
In the Midwest, however, mid- to late-May price increases are already beginning to meet their demise. HRC and CRC spot prices are still $37.00-$38.00 cwt. ($816-$838/mt or $740-$760/nt) and $43.00-$44.00 cwt. ($948-$970/mt or $860-$880/nt), respectively, both ex-mill, about $2.00 cwt. ($44/mt or $40/nt) below mill asking prices. And while CRC spot prices are largely holding up, spot prices for HRC are already wavering--mill order books for HRC for July are extremely light and availability is abundant. HRC lead times are still only about two to three weeks, but if needed, sources indicate that getting something delivered in seven to 10 days isn't out of the question.
That's not to say that mills will begin sharply cutting deals anytime soon. Demand for purchasing flat-rolled in general has slowed dramatically in the last few weeks, especially with heavy levels of Russian and Korean HRC and Chinese CRC due to arrive at US ports in the next couple weeks. And dropping prices isn't likely to get mills many more orders until actual demand levels begin to rise.
Interest in imports is lethargic as well, and offers from offshore sources aren't as plentiful as they have been. Russian HRC offers have been scant, and although a few offers have been heard in the range of $36.00-$37.00 cwt. ($794-$816/mt or $720-$740/nt) DDP loaded truck in US Gulf ports, traders tell SteelOrbis that with almost no US buyer interest, Russian mills aren't pushing for orders. Chinese CRC offers have fallen about $2.00 cwt. since last week to $42.00-$43.00 cwt. ($926-$948/mt or $840-$860/nt) DDP loaded truck in US West Coast ports. And while US buyers aren't exactly rushing to place orders, the disparity between US domestic West Coast spot prices and Chinese offer prices is wide enough to keep US prices soft.
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic | ||||
| HRC | $37.00-$38.00 | $816-$838 | $740-$760 | neutral |
| CRC | $43.00-$44.00 | $948-$970 | $860-$880 | neutral |
| Mexico* | ||||
| HRC | $35.00-$36.00 | $772-$794 | $700-$720 | neutral |
| China** | ||||
| CRC | $42.00-$43.00 | $926-$948 | $840-$860 | ↓ $2.00 cwt. |
| Mexico* | ||||
| CRC | $43.00-$44.00 | $948-$970 | $860-$880 | neutral |
**DDP loaded truck in US Gulf ports