US domestic hot rolled coil (HRC) prices have trended steady for the second week in a row and many sources close to SteelOrbis feel that current price points, which are still holding at approximately $31-$32 cwt. ($683-$705/mt or $620-$640/nt) ex-Midwest mill, will sustain “through at least the summer.”
“The months-long run up on US HRC spot market prices has been supply-based since a lot of capacity has been taken out of the market due to the trade case,” one source said. The final determinations in the anti-dumping / countervailing duty case are set to be announced on August 5.
“There isn’t a lot that’s currently available offshore so I don’t see this supply issue ending any time soon, not to mention that anything that’s booked in the near future will be booked out for a January 2017 arrival,” one source said. “The domestics will have the upper hand on pricing for a while, I think.”