Sources close to SteelOrbis have confirmed that US domestic flat rolled steel prices are soft “and still softening” after the Labor Day holiday.
For example, current HRC prices are down roughly $1.00 cwt. ($22/mt or $20/nt) week-over-week and are now being heard at approximately $36-$38 cwt. ($794-$838/mt or $720-$760/nt), FOB mill.
CRC and HDG prices, on the other hand, are still trending in the same ranges as they were a week ago, although sources have said that a growing number of deals are taking place toward the bottom end of their respective ranges.
Consequently, CRC prices are still being heard at approximately $47-$49 cwt. ($1,036-$1,080/mt or $940-$980/nt), FOB mill, whereas HDG spot market prices continue to trend at roughly $46-$48 cwt. ($1,014-$1,058/mt or $920-$960/nt), FOB mill.
Lead times for HRC are steady at 4-5 weeks, whereas lead times for CRC and HDG coil are being heard at 4-7 weeks and 5-7 weeks, respectively.
As for what’s in store for sheet steel prices, the fact that at least one mill is attempting to take busheling scrap prices down by $50/gt from August settled levels is telling. One source pointed out that current HRC prices (which are, in some cases, being heard below $34 cwt. ($750/mt or $680/nt), for large-scale buyers, “cannot support $450/gt busheling.”
Numerous other sources have noted that service center inventories are still trending low, interest rates remain high, and that overall demand is unexciting.
“I certainly don’t see any obvious reason that the market would shift directions in the short term,” a source said. “I think prices are likely to stay low for the rest of the year.”