As with last week, muted demand and short lead times continue to put pressure on US domestic flat rolled steel prices. HRC lead times, which were heard at 4-5 weeks during week ending June 19, are now trending at 3-4 weeks. Cold rolled coil lead times have also shortened in the past seven days, from 6-7 weeks to 5-6 weeks.
The problem within both markets continues to be lackluster finished steel demand. The US unemployment rate remain high, despite states reopening their economies. With many Americans remaining insecure about employment, demand for things such as cars, appliances, and other steel-related consumer products remains tepid.
In terms of current HRC pricing, the “average” spot market price range for the “average” buyer is hovering just short of $25 cwt. ($551/mt or $500/nt), which is consistent with levels heard a week ago, although deals up to $1.00 cwt. ($22/mt or $20/nt) below that price point have been heard in the marketplace. Contract buyers, on the other hand, are still paying $23-$24 cwt. ($507-$529/mt or $460-$480/nt), ex-mill, although deals below that range are also available based on tonnage.
CRC prices are also similar to what was reported a week ago, with the “average” spot market buyer paying $35 cwt. ($772/mt or $700/nt), ex-mill, and contract buyers reporting transactions in the range of $32-$34 cwt. ($705-$750/mt or $640-$680/nt), ex-mill. Deals for spot and contract buyers are said to be available on a case-by-case basis.