The most commonly reported spot market price transaction range for US domestic hot rolled coil has ticked down once again, from $35-$36 cwt. ($772-$794/mt or $700-$720/nt), ex-mill, to $34-$35 cwt. ($750-$772/mt or $680-$700/nt), ex-mill, and many buyers say they’re concerned that prices could soften a bit further before the market levels out and ultimately, rebounds.
As with last week, SteelOrbis believes that Q1 US HRC prices will eventually settle at $36 cwt. ($794/mt or $720/nt), ex-mill, but additional price volatility may be seen before that happens.
It’s also speculated that flats mills in the Midwest and South may soon push out a price increase announcement, as mills on the West Coast announced earlier in the week. It’s not immediately clear whether West Coast mills’ attempt will be successful, or if it was done as a means to prevent further erosion.
It’s also worth noting that buyers are increasingly reluctant to book offshore, due to uncertainty with domestic pricing. The most recently heard offers Korean and Egyptian steelmakers for HRC in the US domestic market were heard in the range of $32.50-$33.50 cwt. ($717-$739/mt $650-$670/nt), DDP loaded truck in US Gulf coast ports. Buyers say they’ll continue to take a wait-and-see approach to the market.