The most commonly heard spot market price for domestic hot rolled coil prices continues to hold steady, sources note, as buyers across the US say they believe that the months-long uptrend is nearing its end.
Similar to last week, average transaction range for this product is still trending at roughly $57-$59 cwt. ($1,257-$1,301/mt or $1,140-$1,180/nt), FOB mill, however, transactions above this range have been heard for small-tonnage orders.
Cold rolled coil prices, on the other hand, have already started to come down.
This week, CRC prices are being heard at roughly $67-$69 cwt. ($1,477-$1,521/mt or $1,340-$1,380/nt), FOB mill, against a range of $68-$70 cwt. ($1,499-$1,543/mt or $1,360-$1,400/nt), FOB mill, a week ago.
Lead times for both products have also started to shorten.
Sources have confirmed that lead times for HRC are trending at 7-8 weeks, against 7-9 weeks on April 14. Lead times for CRC, which were previously heard at “at or below 9 weeks,” are now trending at “7-9 weeks, give or take.”
At the ISRI national convention this week in Nashville, TN, scrap market sources indicated they’ve already heard that mills are likely to try to take scrap prices down during next month’s buy cycle. Flat rolled sources say they believe this is telling.
“Lead times are shortening, buyers are stepping back unless they’re desperate for steel, and it sounds like the mills are going to try to take scrap down next month,” a source said. “Just looking at that alone, I think it’s safe to say that this long-expected downtrend is upon us.”