US HRC spot prices continue their downward drift

After an early December spot price decline in the US domestic hot rolled coil (HRC) market, prices have experienced another correction, decreasing by another $1.00 cwt. ($22/mt or $20/nt) to the new range of $30.00-$31.00 cwt. ($661-$671/mt or $600-$620/nt) ex-Midwest mill. Sources close to SteelOrbis have also cited belief that “the biggest buyers with the most attractive orders are easily paying in the $29.00 cwt. range, no question about it.”  But not a lot of people are making those huge buys; market players are looking for the bottom and are only placing orders to fill inventory gaps until this downward drift finally tapers off.

In terms of imports, Japanese mills have made a jump into the market and are aggressively seeking US orders. “At this point, there’s a lot of Russian material that’s at the docks, and countries like Brazil and Japan have actively started to chase orders,” said one Texas-based source. “Not only are they cheaper than US hot rolled, their quality is just as good if not better.”  Import pricing may be stable, but “everything is fluid”, as offshore producers are continuing to fight “gloves-off” for US market share.