Last week, the most commonly reported spot price transaction range for US domestic hot rolled coil (HRC) slipped from $21.00-$21.50 cwt. ($463-$474/mt or $420-$430/nt), ex-Midwest mill, to $20.00-$21.00 cwt. ($441-$463/mt or $400-$420/nt), ex-Midwest mill, a trend which was largely due to residual effects from the substantial dip in US domestic scrap prices in early October. This week, the range has narrowed by approximately $0.50 cwt. ($11/mt or $10/nt) on the top end, bringing the current average range to $20.00-$20.50 cwt. ($441-$452/mt or $400-$410/nt), ex-Midwest mill, although deals below this range are said to be available to buyers who are looking to book significant tons.
Many questioned whether suspected downtrends in November scrap prices would also spill over into the US domestic HRC market. This month, however, US East coast scrap prices have remained stable due to unforeseen strength in US East coast export scrap prices. Scrap prices within other regions of the US, though, have trended downward. It is still too soon to tell what type of impact this will have on US domestic HRC prices, but many are hoping the most recent spot price revision will be the last.