US domestic flat rolled steel mills have continued to tick down since our last report a week ago.
Current HRC prices are down by about $2.00 cwt. ($44/mt or $40/nt) on since our last report a week ago and are now being heard at roughly $48-$50 cwt. ($1,058-$1,102/mt or $960-$1,000/nt), FOB mill.
CRC and HDG prices have softened as well. This week’s prices for both products are down by $1.50 cwt. ($33/mt or $30/nt), to an average range of $60.50-$62.50 cwt. ($1,334-$1,378/mt or $1,210-$1,250/nt), FOB mill.
Similar to last week, deals below these ranges continue to be heard within the marketplace based on volume.
Sources have also indicated that lead times for all three products are shortening, with some saying they’ve heard HRC lead times as low as 4 weeks, depending on the mill. The fastest lead times for HDG and CRC have been heard at roughly 5-6 weeks, depending on the mill of origin.
Market players throughout the US believe that this is just the start, and that US sheet steep prices will continue to soften through the at least the rest of Q1. Most sources polled say they also believe that HRC prices will fall to, or slightly below $40 cwt. ($882/mt or $800/nt), before the current downtrend begins to stabilize.