US domestic hot rolled coil (HRC) prices have risen by an additional $1.00 cwt. ($22/mt or $20/nt), on the bottom end since our last report a week ago, but many within the US domestic steel market are questioning if prices are at or near their peak.
Current pricing is now being heard between $43-$45 cwt. ($948-$992/mt or $860-$900/nt), ex-mill, although US flat steel mills continue to push for order placement at the top end of that range.
“We’re advising our customers to just buy what they need, because there’s a lot of speculation that we’re at or very close to the top of the market,” one source said. “Looking ahead, we’re a bit concerned that pricing is going to level out and possibly move back some during the summer months. However, [domestic mills] are still tight and lead times are rough, so we’re planning to keep a close eye on things moving forward.”
Mexican HRC producers are still selling HRC in the US domestic market at $40-$42 cwt. ($882-$926/mt or $800-$840/nt), FOB Houston; interest in booking from Mexico remains robust, despite Donald Trump’s claim earlier in the week that he is considering “ripping up NAFTA” after getting into an immigration spat with the Mexican government.