USA HRC Spot Prices Firm at $1,050/ton
The lion’s share of spot transactions in the US market for typical order sizes of hot-rolled coil (HRC) is taking place routinely at $1,050 per ton early this week, according to market participants on both buy- and sell-sides. The physical market players, however, tell WSD that there is likely more upside to come, pointing to the financial market’s forward curve.
“Futures are telling us there is a lot of confidence in this (HRC) market,” a Midwest service center buyer said. “Spot availability is really tight. A few mills are unable to even offer any sizeable spot tonnage.”
Indeed, HRC futures settlements on the CME Monday—for the first time this year—were all north of $1,000 per ton through the November contract. And the strongest monthly contract was June, which settled at $1,102/ton with a volume high of 619 lots.
“The September settlement is almost six months forward, and that was at $1,055/ton,” a steel distributor emphasized. “That’s about where we are right now and it shows how positively this market is viewed and the expectations on its continued strength.”
Regarding demand, as some earnings season results start to come in, the main drivers cited are infrastructure, energy, non-residential construction, industrial manufacturing and automotive.
“Infrastructure is performing well, supported by a growing demand for energy,” said Valmont Industries’ CEO Avner Applbaum on a Tuesday morning call. Valmont is a major buyer of flat-rolled steel, and its galvanizing services play a key role in protecting and extending the life of steel structures.
“This includes the need to expand the electrical grid to support data centers and the need to replace aging assets,” he added. Applbaum noted: “Industry supply remains constrained with extended lead times and favorable pricing and margins.”
Also on Monday, Nucor increased its Consumer Spot Price (CSP) for HRC by $10 to $1,055 per ton at mills other than CSI, which also moved up $10 to $1,105/ton on the West Coast.
WSD Take:
U.S. hot rolled coil (HRC) prices have continued their upward trajectory, reaching approximately $1,050 per ton in recent days. Importantly, pricing appears to be stabilizing at this elevated level, with mills holding firm and offering limited discounts in the marketplace, according to World Steel Dynamics (WSD) contacts.
Demand conditions remain supportive. Recent earnings commentary from Steel Dynamics and Cleveland-Cliffs highlights strength in infrastructure-related end markets, particularly energy and data center construction, which are driving domestic steel consumption.
On the supply side, the market has remained relatively constrained throughout the first quarter. Sheet imports have averaged roughly 5 million tons on an annualized basis, significantly below the typical 9.5–10-million-ton range. As a result, despite the addition of new capacities such as U.S. Steel’s Big River expansion—the market has continued to operate in a supply deficit, with inventories staying tight.
That said, early-month import data suggests a potential shift worth monitoring. Through the first 13 days of April, imports of tinplate, cold rolled coil, and metallic-coated sheet have already matched or exceeded total March volumes for those products, indicating a possible uptick in select categories.
Even so, geopolitical and logistical risks are tempering import activity. The ongoing conflict involving Iran has heightened concerns around freight costs and pricing volatility, leading many buyers to avoid import exposure.