US domestic hot rolled coil prices have firmed once again this week, to an average of $57-$59 cwt. ($1,257-$1,301/mt or $1,140-$1,180/nt), FOB mill, against $55-$58 cwt. ($1,213-$1,279/mt or $1,100-$1,160/nt), FOB mill, a week ago.
Cold rolled coil prices, however, which have been on an upward trajectory since late-November of last year, have reversed course. This week’s price range has softened by $1.00 cwt. ($22/mt or $20/nt) week-over-week, to an average of $68-$70 cwt. ($1,499-$1,543/mt or $1,360-$1,400/nt), FOB mill.
Similar to previous weeks, transactions slightly above these ranges have been heard for small-tonnage orders.
Lead times for both hot and rolled coil are being heard at 9 weeks or less.
Sources close to SteelOrbis have said they’re not entirely surprised that CRC prices have started to tick down, adding that while they’re perplexed that HRC prices have experienced another bump, they believe that HRC prices “will start to trend down shortly.”
Also, of note, is that while Cleveland Cliffs on Monday announced yet another flat rolled steel increase (putting base-price HRC at $65 cwt. ($1,433/mt or $1,300/nt), FOB mill, the other mills have yet to follow.
“I think that increase was their attempt to squeeze out whatever higher margins they can get before this thing starts to fall apart,” another source added. “If you look at what’s going on as a whole, lead times are coming down, prime scrap prices look like they’re going to be level this month, and I think you’d be hard pressed to find anyone who believes that current market conditions warrant $65-cent hot rolled.”