Spot market prices for US domestic HRC continue to be “a bit of a mixed bag,” sources say, as prices are largely in line with what was reported a week ago.
Most transactions for contract buyers are still taking place at $23-$24 cwt. ($507-$529/mt or $460-$480/nt), although buyers who are looking to purchase limited tonnages are paying $25-$26 cwt. ($551-$573/mt or $500-$520/nt), ex-mill. Lead times are also largely stable since our last report a week ago, at approximately 4-5 weeks.
Pricing for import HRC from Mexico and Korea are also neutral, week-over-week, and continue to be heard in the range of $23-$24 cwt. ($507-$529/mt or $460-$480/nt), FOB Texas and DDP loaded Truck in US Gulf coast ports, respectively.
What’s worth keeping an eye on, sources note, is mills’ plan to restart blast furnaces.
US Steel restarted its blast furnace in western Pennsylvania last week; JSW has also confirmed it plans to restart its electric-arc furnace in Mingo Junction, Ohio, later this month. Cleveland-Cliffs has also announced plans to restart its blast furnace in Dearborn Works, Michigan, within the next 4 weeks.
Not surprisingly, sources close to SteelOrbis have expressed concern that increasing capacity, at a time when finished steel demand is “iffy at best,” could place additional strain on an already restricted market.
“We believe that hot rolled price will continue to firm before the end of the year, but we think that at best, hot rolled prices will stall out at $27 cwt. ($595/mt or $540/nt), ex-mill,” a source said. “But depending on what happens when the blast furnaces restart, that could obviously change things.”