Last week, SteelOrbis reported the most commonly reported spot price transaction range for US domestic hot rolled coil (HRC) had slipped by approximately $0.50 cwt. ($11/mt or $10/nt); this week, prices have corrected by an additional $0.25 cwt. ($6/mt or $5/nt), which brings the current average spot market transaction range to $31.00-$31.25 cwt. ($683-$689/mt or $625-$630/nt), ex-Midwest mill.
Although many speculate the US HRC spot market could endure additional corrections, overall activity within this market has been light this week, as many have chosen to extend the Fourth of July holiday.
HRC continues to be the weakest segment within the US flat rolled steel market. Sources close to SteelOrbis have confirmed that current lead times are trending “somewhere between four and six weeks,” adding that this has mills showing an increased willingness to negotiate price.