Lead times for US domestic HRC continue to trend at approximately 4-5 weeks, although that hasn’t stopped hot rolled coil prices from firming.
Although “the bulk” of transactions for contract buyers are still taking place at $23-$24 cwt. ($507-$529/mt or $460-$480/nt), some SteelOrbis sources have reported that spot market buyers are paying closer to $25-$26 cwt. ($551-$573/mt or $500-$520/nt), ex-mill.
“It’s a bit of a mixed bag,” a source said. “Demand isn’t great, but mills have had some success getting prices higher on smaller quantity orders.”
Although higher prices are a positive, others note that domestic scrap prices, which many hoped would trend upward during this month’s buy cycle, have settled sideways in most parts of the country, although some busheling transactions have settled at up $10/gt ($10/mt.) As such, any talk from the mills about “higher prices due to higher input costs” is likely to face resistance.
In terms of import, imported HRC from Mexico and Korea are being still being offered at approximately $23-$24 cwt. ($507-$529/mt or $460-$480/nt), FOB Texas and DDP loaded Truck in US Gulf coast ports, respectively.