Spot market prices for US domestic hot and cold rolled coil are still falling, sources note, as deals below $40 cwt. ($882/mt or $800/nt) have begun to emerge throughout the market.
“We’re not seeing huge discounts below that level yet, but based on how the market has been going, I don’t see these as being some exception to the rule,” a source said. “I think an official drop below $40 cwt. is on the horizon.”
As of earlier this week, the official spot market price range for US domestic HRC shifted down to $40.50-$41.50 cwt. ($893-$915/mt or $810-$830/nt), FOB mill, against $42-$43 cwt. ($925-$948/mt or $840-$860/nt), FOB mill, a week ago.
CRC prices are also down $1 cwt. ($22/mt or $20/nt) week-over-week, from $60-$62 cwt. ($1,323-$1,367/mt or $1,200-$1,240/nt), FOB mill, on July 29, to $59-$61 ($1,301-$1,345/mt or $1,180-$1,220/nt), FOB mill, today.
Others pointed out that new capacity, which is expected to add significant sheet steel tons to the market before the end of the year, is likely to put further downward pressure on the market.
“If this is where prices are at a 78.4% capacity utilization rate, imagine what’s going to happen when the mills start pumping steel out at full speed,” a final source said.
Additional revisions are expected to emerge by the end of next week.