US sheet steel prices have declined once again, sources note, adding they strongly believe this downward slide isn’t done yet.
This week, “official” HRC pricing has declined from $70-$71 cwt. ($1,543-$1,565/mt or $1,400-$1,420/nt), FOB mill, to $67-$68 cwt. ($1,477-$1,499/mt or $1,340-$1,360/nt), FOB mill, although deals up to $3.00 cwt. below that range have been heard throughout the marketplace.
“Official” CRC prices have also softened week-over-week, from $90-$91 cwt. ($1,984-$2,006/mt or $1,800-$1,820/nt), FOB mill, to $89-$90 cwt. ($1,962-$1,984/mt or $1,780-$1,800/nt), FOB mill. However, similar to last week, deals up to $5 cwt. ($110/mt or $100/nt) below this range have been reported.
“I think this slide is going to continue until prices get back to where they were in late-February,” a source said. “If you take a look at what’s been going on globally, all commodity prices are coming down. Scrap, hot rolled, pig iron, you name it. It’s all coming down. No one should be surprised about what’s going on with the market. The bigger question is how long it’s going to take for hot rolled to reach $50 cwt. ($1,102/mt or $1,000/nt), because until the market settles, no one is going to want to stock inventory.”