The most commonly reported spot market price transaction range for US domestic hot rolled coil may still be trending in the range of $35-$36 cwt. ($772-$794/mt or $700-$720/nt), ex-mill, but sources close to SteelOrbis have reported that deals up to $2.00 cwt. ($44/mt or $40/nt) are available to volume buyers.
“The deals are out there,” a source said. “They’re not available to everyone, but if you show up at the mill with a right-sized order, there’s some wiggle room on price.”
This week’s price happenings have been consistent with predictions SteelOrbis has been hearing for the past seven days, that US HRC prices would dip a bit further, before starting to climb back upward. Current Q1 expectations are that US HRC may ultimately settle at $36 cwt. ($794/mt or $720/nt), ex-mill.
Current prices are still up, year-over-year. On January 19, 2018, SteelOrbis reported that US HRC spot market prices were trending between $32.50-$34.50 cwt. ($717-$761/mt or $650-$690/nt), ex-mill.
Soft domestic prices have also put pressure on offshore offers, as mills in other countries are scrambling to compete for orders.
Offers from Korean and Egyptian steelmakers for HRC in the US domestic market are now being heard in the range of $32.50-$33.50 cwt. ($717-$739/mt $650-670/nt), DDP loaded truck in US Gulf coast ports, which reflects a $1.50 cwt. ($33/mt or $30/nt) dip from offers mid last month.
This is mostly consistent with import offers from the same reporting period last year, when offshore HRC was being offered in the domestic market at $32-$34 cwt. ($705-$750/mt or $640-$680/nt), DDP loaded truck in US Gulf coast ports.