HRC price hovers above $51/cwt in US

Hot-rolled coil prices in the United States dipped marginally on Tuesday December 29, moving just 7 cents per lb below the more than 12-year high reached a day earlier.

Fastmarkets’ daily steel hot-rolled coil index, fob mill US was calculated at $51.22 per hundredweight ($1,024.40 per short ton) on Tuesday, down by 0.1% from $51.29 per cwt the previous day but still up by 3% from $49.74 per cwt on December 22.

Prices were received in a range of $50-55 per cwt across all three sub-indices, with mill data on the low end, distributor assessments on the high end and in the middle of the range, and consumer data in the middle.

Heard in the market
February and March tons are said to be largely sold out, although some sources still reported availability when needed. Buying is sparse, with no one wanting to be left holding high-priced inventory. Some sources said spot market activity is so thin that it’s becoming impossible to establish a price, and as a result current contract mechanisms are under review because steel purchasers can expect to pay very high prices in early 2021.

Imports, while now cheaper, are not a factor, since quotes are already out into the end of the second quarter, sources said. Canadian and Mexican mills that are having production issues will put a further crimp on availability, they said.

Quotes of the day
“Business is good; unfortunately we cannot take advantage of the pricing by selling more tons because there are no additional tons to sell,” one mill source said.

“Very little business is being done since there is not much in the way of spot tons to sell. I would guess they could ask for $55 [per cwt for hot rolled] today, and if someone needs it they will pay,” a midwestern distributor source said.

What to read next
Discover how the US-Japan trade deal is reshaping the auto and steel industries, with insights on tariffs, production shifts, and market competition
Fastmarkets’ SBQ price assessments and monthly forecast provide much-needed clarity and a benchmark for buyers in the steel industry to use for planning and negotiation.
American Chambers of Commerce (Amcham) across Latin America are calling for urgent negotiations to prevent the escalation of trade tensions between their countries and the US, following the announcement of sweeping 50% tariffs by President Donald Trump.
Explore the latest trends in lumber markets as vacation time and economic uncertainty impact sales and trading activity.
The lower end of the price range for Biodiesel SME B100 fob US Gulf price on Friday July 18 was erroneously published at $2.243 per gallon. This has been corrected to $4.243 per gallon. Fastmarkets’ pricing database has been updated to reflect this change. These prices are part of the Fastmarkets Ags oils, fats and biofuels price […]
Fastmarkets has corrected its MB-BMS-0015 Black mass, NCM/NCA, payable indicator, nickel, exw USA, % payable LME Nickel cash official price, which was published incorrectly on Wednesday, July 16.