Spot market prices for US domestic hot and cold rolled coil have continued to fall since our last report a week ago, sources note, adding that it’s anyone’s guess as to when prices will bottom out.
“I think it’s getting near the floor, but we’ve all been saying that for the past few weeks,” a source said. “At this point our plan is to just not stock up and to not buy anything more than what we need.”
A second source agreed. “I think the market is going to over correct and bounce; the question is when the market is going to get there and where that ‘too-low’ point is going to be,” a source said. “We could hit the bottom next week, or maybe this thing extends out through September. It’s anyone’s guess.”
This week’s average price range for US domestic HRC is trending at $42-$43 cwt. ($925-$948/mt or $840-$860/nt), FOB mill, against at $44-$45 cwt. ($970-$992/mt or $880-$900/nt), FOB mill, a week ago. Deals up to $1.00 cwt ($22/mt or $20/nt) below this range have been heard within the marketplace.
CRC prices, on the other hand, have dropped a bit further in the past week, and are now being heard at $60-$62 cwt. ($1,323-$1,367/mt or $1,200-$1,240/nt), FOB mill, against $66-$68 cwt. ($1,455-$1,499/mt or $1,320-$1,360/nt), FOB mill, a week ago. Deals below this range have also been heard throughout the marketplace.
All sources polled said they believe that additoinal downticks in pricing will be seen next week.