The US flat rolled steel spot market prices are still facing downward pressure from two key factors: short lead times and hindered demand.
As with last week, lead times for US HRC are holding at 3-4 weeks, whereas lead times for CRC have remained at 5-6 weeks. Spot market prices, however, have revised downward. Current US HRC spot market prices are trending at $23-$24 cwt. ($507-$529/mt or $460-$480/nt), ex-mill, which is down by roughly $1.00 cwt. ($22/mt or $20/nt) on the top end since our last report a week ago. US CRC prices are also down by $1.00 cwt. ($22/mt or $20/nt), to a new average range of $31-$33 cwt. ($683-$728/mt or $620-$660/nt), ex-mill.
Overall steel demand remains weak, which is evidenced by current lead times, despite mills’ 55.4% capacity utilization rate.
Sources close to SteelOrbis say they’re keeping close tabs on where scrap prices settle during the July buy cycle. Although early indicators put “most of the market” at sideways to down $10/gt ($10/mt) on cut grades, and down $10-$30/gt ($10-$30/mt), although early indicators are varied based on the region and grade. Final settled prices are not expected to emerge until after the July 4 holiday weekend.