The most commonly heard spot price transaction range for US domestic HRC is still trending in the range of $31.00-$33.00 cwt. ($683-$728/mt or $620-$660/nt), ex-mill, although one source told SteelOrbis that transactions slightly below that range have been available to volume buyers.
“At the end of last year a lot of us figured that prices would come down, because even with the Section 232 tariff US prices were still a lot higher than imports,” a source said, adding that current prices are below where they were when Section 232 was announced is “surprising to everyone.”
The wildcard in today’s news, however, has been the announcement that the US plans to lift Section 232 tariffs against Canada and Mexico. Current Mexican HRC prices with the 25 percent tariff (FOB Texas) have been largely in line with US domestic prices, but if the tariff is removed, it’s unclear whether Mexican HRC prices will fall or if they’ll continue to sell at price points at, or slightly below, domestic mill offers.