US domestic HDG prices have revised downward once again since our last report a week ago, sources note, adding that for the most part, HRC and CRC spot market price ranges have remained stable but weak.
Consequently, US HRC prices continue to trend in the approximate range of $39-$41 cwt. ($860-$904/mt or $780-$820/nt), FOB mill, while CRC prices are still being heard at approximately $50-$53 cwt. ($1,102-$1,168/mt or $1,000-$1,060/nt), FOB mill. Lead times for US HRC are now trending at approximately 3-5 weeks, whereas CRC lead times are trending at approximately 7-8 weeks.
US HDG prices, on the other hand, are now being heard at roughly $48-$50 cwt. ($1,058-$1,102/mt or $960-$1,000/nt) FOB mill, against $49-$51 cwt. ($1,080-$1,124/mt or $980-$1,020/nt) FOB mill, a week ago. Lead times for US domestic HDG coil are trending at an average of 7-9 weeks.
Deals slightly above and below these ranges have been heard within the marketplace based on order tonnages.
Among the factors currently weighing on the market include the still-possible United Auto Workers (UAW) strike, which could potentially lead to an oversupply of flat rolled steel within the marketplace.
Sources have also said they’re keeping close tabs on news that US Steel has become an acquisition target. As of today, August 17, both Cleveland Cliffs and Pittsburgh-based Esmark have made offers to buy US Steel. Cliffs disclosed a cash-and-stock offer at $35 per share on Sunday, whereas Esmark has since offered an all-cash bid at $35 per share.
Emark’s website describes the company as being a “diversified, privately-held family company with a portfolio of industrial companies,” that also has “strategic partnerships and joint ventures with leading steel companies from around the world to purchase, process, and distribute steel products throughout the U.S.”
Earlier today, Reuters reported that the world’s second largest steelmaker, ArcelorMittal SA, is also considering making a bid.