US HRC prices start to slide

Although US domestic hot rolled coil (HRC) producers were able to keep prices level throughout the summer, spot prices ticked down about $1.00 cwt. ($22/mt or $20/nt) in the last week, bringing the new range to $32.00-$33.00 cwt. ($705-$727/mt or $640-$660/nt). Still, sources close to SteelOrbis say that most transactions are taking place at the higher end of that range, but a growing number of previously-seen “outlier” deals becoming more common could no longer prevent a slide in the average spot price span. 

Sources were quick to insist, however, that the downtrend is not the start of a sustained downward spiral; expectations hold that HRC spot prices should remain relatively stable through the close of the year. “I have a hard time seeing mills taking things down further,” said one Texas-based source, who agrees that while the biggest customers with the largest orders may book a few tons just south of the $32.00 cwt. ($705/mt or $640/nt) mark in the fourth quarter, those will certainly be the exception, not the rule.  Trader sources, who have indicated that their flats business “is better than it’s been in a long time,” seem to agree.   In terms of futures prices, those have held steady since our last report a week ago, with order activity and inquiries holding stable.