The most commonly heard spot price transaction range for US domestic hot rolled coil (HRC) has softened by $1.00 cwt. ($22/mt or $20/nt) on the bottom end of last week’s price range, and by $1.50 cwt. ($33/mt or $30/nt) on the top end, which brings the current average spot market price transaction range to $29.00-$30.50 cwt. ($639-$672/mt or $580-$610/nt), ex-mill. Deals slightly below this range continue to be available to volume buyers, sources say.
Service center inventories continue to be healthy, sources report, adding that “no one is in any big rush to buy right now especially since prices are soft and since lead times are anywhere between three and six weeks.”
Others, however, say they’re “somewhat confused” that more buyers aren’t placing orders in light of the Section 232 investigation, noting that if an affirmative decision is found, that tariffs against imports could be substantial, which “is likely to cause a flood of buying activity, which, as we all know, will push lead times out and push prices up.”