The US flat rolled steel market is enduring downward price pressure due to a myriad of reasons, such as US automaker closures and a widespread expectation that domestic scrap prices are set to tumble in April.
Last week, SteelOrbis reported that US HRC prices were trending in the range of $28-$30 cwt. ($617-$661/mt or $560-$600/nt), ex-mill, and that sources believed that price softening was on the horizon. SteelOrbis further predicted that US HRC prices could fall to an average price of $25 cwt. ($551/mt or $500/nt) in the second quarter of 2020.
This week, the average spot market price range is trending at $26-$28 cwt. ($573-$617/mt or $520-$560/nt), ex-mill. Numerous sources have said it’s “just about impossible” to peg the true market price, because the price depends on the size of the order and the customer who is buying it.
Sources have also said that the one bright spot within the market is planned April maintenance outages, “which could help the market from falling off a cliff.”