It’s been relatively quiet within the US domestic hot rolled coil (HRC) market since our last report a week ago, as many seem to have started winding down in advance of the Thanksgiving holiday. Pricing continues to be all over the map, according to one Midwest-based source. “The biggest buyers are still able to negotiate some good deals,” he said, between $1.00-$2.00 cwt. ($22-$44/mt or $20-$40/nt) below the most commonly transacted range of approximately $32.00-$33.00 cwt. ($705-$727/mt to $640-$660/nt) ex-Midwest mill, “but if you’re just an average customer looking place a smaller order, you should expect to pay at the higher end of the current spot price range.”
What is interesting, however, is that strength in the US dollar combined with ever-falling scrap prices into Turkey are placing downward pressure on finished Turkish steel products. Traders close to SteelOrbis have confirmed being “randomly cold called” by Turkish producers, who have reduced week-on-week pricing by about $1.00 cwt. ($22/mt or $20/nt). And while Brazilian mills continue to aggressively pursue US market share, it’s unclear whether they’ll start to match the latest offer prices out of Turkey.
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic | ||||
| Ex-Midwest mill | ||||
| HRC | $32.00-$33.00 | $705-$727 | $640-$660 | neutral |
| Turkey* | ||||
| HRC | $27.50-$28.50 | $606-$628 | $550-$570 | down $1.00 cwt. |
| Australia* | ||||
| HRC | $28.50-$29.50 | $628-$650 | $570-$590 | neutral |
| Brazil* | ||||
| HRC | $29.00-$30.00 | $639-$661 | $580-$600 | neutral |
| *DDP loaded truck US Gulf Coast ports | ||||