Spot prices within the US domestic hot rolled coil (HRC) market, which firmed slightly on the top end of the most commonly reported transaction range during the first week of February, have remained steady since our last report a week ago, at approximately $19.50-$21.00 cwt. ($430-$463/mt or $390-$420/nt), ex-Midwest mill.
“The great bulk of what’s going on is happening at the middle of this range,” sources say, “there are a couple of transactions that are happening at the top end but those are for the smallest tonnage bookings.”
Other sources continue to note that the US domestic HRC market continues to remain the weakest segment of US domestic flat rolled steel market, as HRC mills are still without significant order activity from US domestic pipe mills due to continued declines within global oil prices and US domestic drilling activity. As with other flats segments, HRC market players report concerns that if US domestic scrap prices tick down in early March, that market prices in downstream segments, including HRC, could be vulnerable to correction.