US domestic flat rolled steel spot market prices have softened across the board this week and US hot rolled steel prices have not been immune from this trend. Last week SteelOrbis reported that the average spot price transaction range was trending between $29-$30 cwt. ($639-$661/mt or $580-$600/nt), ex-Midwest mill, adding that volume-sized buyers could obtain HRC for $28.00 ($617/mt or $560/nt), if not slightly below that price point.
This week short, two-to-three-week lead times have helped push prices downward. Today’s price range is being heard at $26-$28 cwt. ($573-$595/mt or $520-$540/nt,) ex-Midwest mill. Multiple sources close to SteelOrbis are citing belief that prices may not bottom out until they hit $25 cwt. ($551/mt or $500/nt). “$25 just seems to be the nice round number that we can hang our hats on,” one source said. “It’s hard to predict where or when this will bottom but one thing is for sure, the downtrend has scared buyers out of the market.”
Looking offshore offers, US import HRC from Korea and Turkey are unchanged in the past week, at approximately $25.00 cwt. ($551/mt or $500/nt), DDP loaded Truck in US Gulf coast ports. Interest in booking futures, however, is trending weak due to current volatility within the domestic spot market.