US HRC prices level out after weeks-long downtrend

Spot prices within the US domestic hot rolled coil market have leveled out since our last report a week ago, although there is widespread skepticism that pricing has finally bottomed.

 

As with last week, average spot market pricing for US HRC remains at $25-$26 cwt. ($551-$573/mt or $500-$520/nt,) ex-Midwest mill.   “Anyone can get that price,” one source said. “We’re talking truck loads; this isn’t even for serious tonnage.”  That same source confirmed that “the big [buyers] can get $1.00 cwt. ($22/mt or $20/nt) better any day of the week.”

 

The months long downtrend in pricing, which began in the early part of August, has scared most buyers out of the market, another source adds.  “We won’t start to see any real activity until everyone is convinced prices have stopped falling.  Once that happens, and everyone jumps back into the market, no one should be surprised when the price increase announcements start coming.”

 

In terms of US import HRC, trader sources say that while some countries, such as Turkey and Mexico are offering futures, “these offers are at or above domestic prices and with all the market uncertainty, and with domestic lead times being so short, hardly anyone is entertaining futures.”