Some sources close to SteelOrbis have said they believe that US HRC inventories are a bit higher than many people think; between this, the suspicion that there will be significant import arrivals starting in September, and “average” domestic lead times, buyers say they’re in no rush to stock up.
“We’re all waiting to see how much of a correction we’re going to see on hot rolled, and whether the tariffs against Mexico and Canada are lifted,” one source said. “There’s also the matter of pending import arrivals, and the plan for domestic mills to bring on more capacity. We know [the correction] is coming but at this point it’s hard to peg how all of these factors will play into one another.”
Current pricing within the US domestic and import HRC spot market has remained stable since our last report a week ago.
US domestic HRC pricing continues to hold at $44-$46 cwt. ($970-$1014/mt or $880-$920/mt), ex-mill, while US import HRC in the domestic market from Korea, Turkey, Egypt and Germany is still being heard in the range of $37.50-$38.00 cwt. ($827-$838/mt or $750-$760/nt), DDP loaded truck in US Gulf coast ports, although some trader sources say that deals up to $0.50 cwt. ($11/mt or $10/nt) lower may be available.