Last week, SteelOrbis reported that the “official average” spot market price for US domestic HRC is was being reported in the range of $29.00-$30.00 cwt. ($639-$661/mt or $580-$600/nt), ex-mill for most customers.
This week, the average price is hovering closer to $29.00 cwt. ($639/mt or $580/nt), ex-mill, although sources close to SteelOrbis have indicated that a number of deals are still taking place up to $2.00 cwt. ($44/mt or $40/nt) below that range.
Sources close to SteelOrbis have said that demand is okay, but unexciting. “We’re busy, but not busy enough,” one source commented. “Yet now that scrap has settled downward, there’s a lot of questions about whether mills will be able to hold their line with spot market pricing.”
Another source reiterated his strong belief that mills’ lead times will begin to shrink in the upcoming weeks. “It’s all a bit wait-and-see at this point,” he said. “If you’re a small buyer, you’re definitely paying a higher price, but if you’re waving any volume at the mills, the deals are there."