Slightly longer lead times have helped firm US domestic hot rolled coil prices. Last week, SteelOrbis reported that domestic HRC prices had firmed from an average of $21-$23 cwt. ($463-$507/mt or $420-$460/nt), to approximately $22-$23 cwt. ($485-$507/mt or $440-$460/nt), ex-mill.
This week, the most commonly reported spot market price transaction range has firmed by $0.50 cwt. ($11/mt or $10/nt) on the top end, to an average of $22.00-$23.50 cwt. ($485-$518/mt or $440-$470/nt), ex-mill. Lead times are being heard at 5-6 weeks.
The most commonly heard US domestic CRC spot market price transaction range, however, continues to hold at an average of $31-$33 cwt. ($683-$728/mt or $620-$660/nt), ex-mill. Sources close to SteelOrbis have said that due to lengthening lead times, deals toward the end of this range are “disappearing fast.” Current CRC lead times are being reported at 6-8 weeks, depending on the mill.
In terms of market conditions, the overall state of the steel market remains mostly on par with what’s been reported in recent weeks. Market sentiment is being described as “ho-hum,” and while order activity has improved slightly, it is hardly robust.
The brightest spot in terms of market pricing, sources note, seems to be the widespread belief that US scrap prices are expected to firm next month, a trend which is more linked to improvements in export activity than anything else. Should scrap indeed trend upward, it’s believed that flats mills will try for another price increase.