USA HRC Spot Price Range Pegged at $1,130-$1,140/ton
The spot price of hot-rolled coil (HRC) in the US flat steel market continued its slow and steady rise early this week, according to both buy- and sell-side market participants. Depending on order size and the specific mill, market players reported a low price of $1,130 per ton and a high of $1,140 per ton—as well as lead times of about eight weeks.
“Activity has been brisk, but recent prices have been fairly steady, or up just marginally,” a Midwest service center source told WSD. In fact, after three straight weeks of $10 increases since June 1, Nucor slowed its roll a bit, raising its Consumer Spot Price (CSP) for HRC by $5 to $1,130 per ton on Monday, June 22nd.
Morgan Stanley issued a recent report suggesting that the supply-driven rally is nearing its peak. HRC futures on the CME, however, continue to show strong market confidence. Settlements Monday were off a little from the previous close, but were still touching or exceeding $1,200 per ton in August, September and October.
“Demand has been consistently good,” a steel distributor serving the southern US told WSD at last week’s Global Steel Dynamics Forum in New York. He added that service center inventories continue to diminish. “If I was able to buy more spot, I’d be able to ship it,” he said, reflecting on the healthy business activity.
Jason Miller, Worthington’s VP of Purchasing/Cost Planning noted in a LinkedIn post: “The conversation has shifted more toward the need for imports, moving from opportunistic to a strategy for some buyers who cannot get what they need domestically.”