Last week, SteelOrbis reported that US HSS prices had revised downward by $0.50 cwt. ($11/mt or $10/nt) on the bottom end from levels seen one week prior; today, the total average spot market price transaction range has undergone another downward revision, from last week’s range of $54.50-$56.00 cwt ($1,201-$1,235/mt or $1,090-$1,120/nt) ex-mill, to the current range of $53.50-$55.50 cwt. ($1,179-$1,224/mt or $1,070-$1,110/nt), ex-mill. This reflects a decrease of $0.50 cwt. ($11/mt or $10/nt on the high end and $1.00 cwt. ($22/mt or $20/nt) on the low end of the range.
Sources close to SteelOrbis largely believe today’s transaction range could narrow on the top end again before the end of the year.
“As long as hot rolled [coil] prices are soft, HSS is going to stay soft,” a source said, noting that while December scrap prices are expected to settle sideways in Detroit and Pittsburgh, current price points may not be strong enough to prevent further erosion of US HRC prices.
One source believed that US HRC prices may not bottom until they reach an average of $37.50 cwt. ($827/mt or $750/nt), which means that US HSS prices could fall further before leveling out.
Demand, another source added, is also winding down, which is consistent with buying patterns during the final weeks of the year.