The most commonly reported spot price transaction range for US domestic hot rolled steel has ticked down by $1.00 cwt. ($22/mt or $20/nt) since our last report a week ago, and many buyers expect the market will continue to show signs of correction through late-November.
Today, the most commonly heard spot market range is being heard at $25-$26 cwt. ($551-$573/mt or $500-$520/nt,) ex-Midwest mill. Current lead times are spanning between three to four weeks.
Inventories are still healthy, sources note, adding that “no one is in any need to rush out and buy anything. People are taking a wait-and-see approach and they don’t want to make any purchasing decisions until they’re sure prices have settled.”
It should further be noted that the upcoming elections have some buyers sitting on the sidelines until the direction of the electorate becomes clearer.
“Come November we’ll know who the next President will be and we’ll also know which [political] party will control the House and the Senate. At that point, people are going to know what holes they have in their inventories and they’ll finally start to buy in anticipation of their first and second quarter needs,” the source said.