The average US hot rolled coil (HRC) spot market price has ticked town again since our last report a week ago, from $33.00 cwt. ($728/mt or $660/nt) ex-mill, to $32.00-$33.00 cwt. ($705-$728/mt or $640-$660/nt), ex-mill, although some sources close to SteelOrbis have reported that deals up to $2.00 cwt. ($44/mt or $40/nt) below this range are available to volume buyers.
Today’s price points show a marked decline from levels seen during the first week of January 2019, when US HRC was being sold in the range of $37-$38 cwt. ($816-$838/mt or $740-$760/nt) ex-mill.
Sources have confirmed that lead times are hovering “at about four weeks,” adding that while ex-mill order placement “leaves a lot to be desired,” spot market business is robust, as buyers have been more inclined to make smaller buys on the spot market, as opposed to committing to larger volume tonnages.
Others have expressed concern that prices could fall further after scrap settles this month, as the current forecast puts US scrap prices down between $10-$30/gt, depending on the grade and the region.
In terms of imports, interest in booking offshore remains light, at best, as US mills have been “ready and willing to match any import offer that’s available.”