US hot-rolled coil prices moved marginally higher this week, bouncing off recent spot pricing lows at $800/nt, fueled by continued reports of declining mill inventories as ongoing Section 232 steel tariffs continue to limit imports, market insiders told SteelOrbis this week. Other flat grades continued down as domestic demand continues to lag amid reports that scrap pricing could dip further for October.
Insiders said this week’s announcement from key Canadian flat steel producer Algoma Steel may have also contributed to the rebound in US HRC pricing. Strong futures prices for HRC, fueled by growing uncertainty over trade tariffs’ affect on domestic supply also are contributing to HRC price stability, they said. Recently HRC futures for October traded at $806/nt ($888/mt), while November traded at $833/nt ($918/mt) and December at $858/nt ($946/mt). First quarter 2026 HRC futures currently trade in the $870’s/nt ($960s/mt) as futures traders attempt to hedge against growing tariff and global economic uncertainty.
As previously reported by SteelOrbis, Canadian steelmaker Algoma Steel Group Inc., announced Oct. 1 that it has received a major financial boost with C$500 million in liquidity support from the Canadian federal and Ontario provincial governments. This funding aims to give Algoma the flexibility it needs to withstand US trade measures and accelerate its decarbonizing and modernization plans.
The package includes C$400 million in loan facilities from the federal government under the Large Enterprise Tariff Loan Facility, and C$100 million from the Ontario government.
Market insiders say the 50 percent import tariffs on Canadian and Mexican steel production has in effect effect locked imports from the US’ two key suppliers out of the market, stressing domestic producers to increase plant capacity utilization rates at a time when most mills are headlong into yearly maintenance activities. Reports from mills of increased supply allocations continued this week.
Algoma CEO Michael Garcia stated this week that the 50 percent tariff imposed by the US have effectively closed the US market to Canadian steel, necessitating decisive financial support. “We require this liquidity support to withstand this unprecedented US governmental action, and importantly, to continue our transformation for the future,” Garcia said, adding that Algoma remains a critical pillar of Canada’s economic strategy.
This week’s price rebound for HRC follows earlier declines reported by SteelOrbis as continued low demand had few buyers remain willing to restock inventory fearing prices could continue down, especially since October scrap prices were increasingly seen lower.
At last report, October US Ohio Valley prime busheling scrap during the upcoming October buy-cycle negotiations is seen $20-30/gt less, while shredded scrap could dip $10-20/gt, scrap insiders said. Obsolete grades such as HMS I/II and P&S scrap are seen sideways to potentially lower, though improved market sentiment from key export buyers could limit declines, scrap insiders said.
The weekly SteelOrbis HRC price average rose $7.50/nt to on average $807.50/nt ($890/mt), or $40.375/cwt., up from $800/nt ($882/mt), or $40.00/cwt., one week ago.
In other flat steel markets, following an earlier weekly spot CRC rebound of $5/nt to on average $1,015/nt ($1,119/mt), or $50.75/cwt., CRC pricing was reported $10/nt less at on average $1,005/nt ($1,107/mt), or $50.25/cwt.. Given a decline in CRC values and an increase in HRC pricing, the current spread between HRC and CRC stands at $197.50/nt ($218/mt), or $9.875/cwt., off from $215/nt ($237/mt) or $10.75/cwt., one week ago.
In the coated steel markets, spot HDG grade steel dipped another $5/nt for a second week to on average $910/nt ($1,003/mt), or $45.50/cwt., off from $915/nt ($1,009/mt), or $45.75/cwt., one week earlier.