Two weeks ago, the most commonly reported spot market transaction range for US domestic hot rolled coil (HRC) corrected to $19.50-$20.50 cwt. ($429-$452/mt or $390-$410/nt), ex-Midwest mill. This week, prices have softened by an additional $0.50 cwt. ($11/mt or $10/nt), which brings the current average spot market price transaction range to $19.00-$20.00 cwt. ($419-$441/mt or $380-$400/nt).
Buyers continue to report that activity is OK, but the primary challenge is that supply continues to outpace demand. It should also be noted that the US has entered its annual end-of-year slowdown period, which is indicative of lessened order activity due to the holiday season. As with HDG coil, most buyers say that if they do need to fill holes in their inventory they are more likely to turn to a service center before placing an order at the mills, as service centers have plenty of HRC in stock and are open to negotiating deals.