The most commonly heard spot price transaction range for US domestic hot rolled coil (HRC) continues to be heard in the approximate range of $29.50-$31.50 cwt. ($650-$694/mt or $590-$630/nt), ex-mill; for the most part, buyers “are holding off on making any significant inventory moves” until after they have a better understanding of where the market is going.
“We’re all just stuck,” a source said. “Sure, we could run out and stock up now but if the Section 232 investigation doesn’t slap the big huge tariffs on imports, like the President keeps saying he intends to do, it’s largely suspected domestic prices will come down. If the tariffs are put in place, domestic prices are expected to shoot through the roof. It’s the perfect example of being stuck between a rock and a hard place.”
And while domestic mills continue to be largely in favor of creating a protectionist market, other US industries, including the apple industry, whiskey industry, dairy industry and meat industry have all come out in opposition of imposing heavy tariffs on steel imports, as countries throughout the world have said they plan to consider “retaliatory measures” against US exports should the steel tariffs go through.