On Monday, the American Iron and Steel Institute reported that the domestic capacity utilization rate had fallen to 55.8%, reflecting a 33.9% drop in production from the same reporting period last year. Yet despite reduced output at US domestic flat rolled mills, market prices have continued to fall.
Last week, SteelOrbis reported that average spot market price transaction range for US domestic HRC was trending in the range of $24-$25 cwt. ($529-$551/mt or $480-$500/nt), ex-mill. This week, sources say prices have fallen to an average of $21.50-$23.00 cwt. ($474-$507/mt or $430-$460/nt), ex-mill.
In contrast, the average spot market price range for US HRC in early May 2019 was trending at $32.00-$33.00 cwt. ($705-$728/mt or $640-$660/nt), ex-mill. As with other flat rolled steel products, sources are hopeful that the expected rebound in domestic scrap prices, during this month’s buy cycle, will prevent HRC prices from slipping any further.
Additionally, US flat steel mills announced late today a price increase for all flat products, but sources say it is unclear yet whether the increase will stick.