SteelOrbis sources have confirmed that US HRC spot market prices have continued to erode in the past week, from $24.50-$25.50 cwt. ($540-$562/mt or $490-$510/nt), ex-mill, to an average of $24.00-$25.00 cwt. ($529-$551/mt or $480-$500/nt) ex-mill.
“The entire market is pessimistic right now. Pricing is a nightmare,” a source said. “Demand is weak and spot [market] business is extremely competitive.”
Another source agreed, noting that while he’s heard rumors that flats mills may soon try for a price increase, “if for no other reason than to stop the bleeding,” in the absence of higher scrap prices, a “black swan” event or an unexpected jump in demand, attempts to raise prices will likely fail.
A bright spot, however, may come after US scrap prices settle in November. It’s been heard that mills have quietly re-entered the market this week due to their failure to buy sufficient scrap tonnages at the beginning of the month. As of Wednesday this week, it was predicted that US scrap prices are likely to settle at strong sideways to possibly upward during next month’s buy cycle.