Spot market prices for US domestic hot and cold rolled coils continue to trend “squishy,” sources note, despite numerous mills being offline for maintenance.
For example, on Monday, the American Iron and Steel Institute (AISI) reported that for the week ending October 22, 2022, domestic mills’ capacity utilization rate was recorded at 74.8%, compared to a rate of 83.2% the same reporting period in 2021.
Both production rates, and spot market prices, are down month-over-month. On September 16, SteelOrbis reported that for the week ending September 10, domestic mills’ capacity utilization rate was recorded at 83.3%, and that spot market prices for HRC and CRC were trending at $38-$40 cwt. ($837-$882/mt or $760-$800/nt), and at $55-$58 cwt. ($1,213-$1,279/mt or $1,100-$1,160/nt), respectively, both FOB mill.
This week, on the other hand, sources report that spot market prices for US domestic HRC are trending at $34-$37 cwt. ($750-$816/mt or $680-$740/nt), FOB mill, whereas CRC prices are being heard in the range of $47-$49 ($1,036-$1,080/mt or $940-$980/nt), FOB mill. Lead times for HRC are still holding at 4 weeks or less. CRC lead times are hovering at “roughly 6 weeks.”
Sources also say they believe that there is “a lot more downside than upside to pricing between now and the end of the year.”
“Once the mill outages are over, the excess steel that’s going to start flowing back into the market could put negative pressure on coils moving forward,” a source said. “There is a lot of uncertainty in the market which has led to a lot of companies being very cautious with their inventory levels.”