The most commonly heard spot market price for US domestic hot rolled coil continues to trend in the range of $34.50-$35.50 cwt. ($761-$783/mt or $690-$710/nt), ex-mill, but many are questioning whether a third flat rolled steel price increase announcement is on the horizon.
“With lead times holding at three to four weeks, and additional capacity coming online, there’s a conflict of opinion as to whether mills would be successful in getting prices much higher,” a source said. “We certainly don’t see anything spiking anytime soon, but we don’t see prices falling off a cliff, either.”
Another source agreed, adding that demand, inventories and inquiries are all stable.
“I think the excess capacity is going to place downward pressure on the market once the summer hits, so the mills may try for another increase before that, just to inch things up a bit more before the summer slowdown.”
In terms of import pricing, the most average range from Serbia and Egypt are trending $1.50 cwt. ($33/mt or $30/nt) below US domestic, DDP loaded truck in US Gulf coast ports. Mexican HRC is also “about $1.50 cwt. ($33/mt or $30/nt) less than domestic, FOB Houston.