Spot prices within the US domestic hot rolled coil (HRC) market may have remained sideways since our last report a week ago, at approximately $19.50-$20.50 cwt. ($430-$452/mt or $390-$410/nt), ex-Midwest mill, but a number of SteelOrbis sources remain skeptical that current market prices could firm beyond the current range.
“Hot rolled coil continues to be the weakest product within the flats market since there is pretty much zero activity out of any of the pipe mills,” one source said. “Prices have gone up but flats mills are still hurting.”
That sentiment is underscored by this week’s announcement by AK Steel, which noted the company’s shipments in the fourth quarter of 2015 declined year-on-year and quarter-on-quarter as a result of the company’s decision to focus on sales of higher margin, value-added products and reduce sales to the carbon steel spot market. Despite those efforts, AK Steel reported a net loss of $147.1 million for Q4 2015.