US domestic hot rolled coil prices may be stable since our last report a week ago, at $41.50-$43.00 cwt. ($915-$948/mt or $830-$860/nt) ex-mill, but sources close to SteelOrbis say that short, four-week lead times coupled with lessened order activity has mills more open to negotiating on price.
“The slow downward drift is continuing,” a source said. “But at this point, there are a lot of outside factors that are at play, including possible labor strikes, that could cause supply issues. The goal is to be careful that we don’t miss the bottom.”
Others have expressed concern over what may happen within the market should Section 232 be overturned, but the current, widespread expectation that if that happens, it won't be for at least a year.
"If the Democrats take the House and the Senate in the November elections, they may be able to vote on a repeal, but the President is guaranteed to veto the decision, and the Democrats probably won't have the votes needed to overturn the veto," a Washington DC-based source said.
Other sources agree.
"The stock market is recording record highs, manufacturing is booming and we have record-low unemployment. The economy is doing well," a source said. "When these things change downward in a meaningful, sustained fashion, maybe then something changes on 232."