Most USA HRC Spot Prices Firmly at $900/ton
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After a sustained rally, USA spot prices for hot-rolled coil appear to be squarely at $900 per ton or higher for the typical size order during this Thanksgiving holiday-shortened buying week. Several buyers reported to WSD prices slightly (about $10/ton) below the $900 threshold, but not many. What’s more, some mill sales reps are pointing to limited activity as high as $930-$950 per ton.
Nucor on Monday again increased its Consumer Spot Price (CSP) for HRC to $915 per ton, a relatively subdued $5 hike from a week ago. Nonetheless, its offer level is now nearly 6% above the recent $865/ton low in mid-August. Re-roller NLMK, after announcing price hikes to its clients, is asking around $900 per ton, according to market participants.
“Lead times are well into January at several mills,” a Midwest service center buyer told WSD, “and every mill isn’t even open for January spot orders just yet. I expect that will happen for most of those after this holiday week.”
However, a steel distributor added: “HRC spot might be limited at the beginning of the year because many mills are making the most of buoyant contract orders.”
“There is sustained demand, but not surging spot demand,” a steel trader noted. “Limited import options coupled with demand for mostly contract tonnage means overall market strength that domestic mills are capitalizing on right now.”
The biggest flat-rolled producer, Cleveland-Cliffs, foreshadowed the contract-ordering binge when on October 31 it announced it was no longer accepting December HRC spot orders. “Our contract customers will be allowed to enter against contractual obligations for December in accordance with the contractual terms,” Cliffs wrote in a letter at that time. And as of Tuesday, November 25 morning, Cliffs has yet to announce the opening of its January spot orderbook for HRC.
Meanwhile, Monday’s HRC futures settlements on the CME continue to reflect a contango market with trading peaking in January at $936/ton.
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