Is the HRC price you are using published daily? It should be
The steel markets, and specifically hot-rolled coil, have been buffeted by dynamics inside and outside the market. Section 232 tariffs, challenges in the automotive sector, recessionary forces, the significance of HRC and No 1 busheling prices, and blast furnace restarts and mini-mill steel capacity are combining to create volatility that is compelling decision-makers to watch this market closely.
In spring this year, the shutting down of the US auto industry saw scrap supply shrink and busheling prices rose as a result of the market seeking to secure supply. At the same time, hot-rolled coil (HRC) prices dropped, squeezing mill margins. Covid-19 also caused an increase in the frequency of steel being bought. All this means we are seeing a market with increased volatility and these market movements are reflected in our daily US HRC index.
This is because an index that is produced daily is more reactive to changes such as mill price increases or monthly scrap settlements, which the market needs to keep on top of.
Our team of steel reporters in the US, all of whom price HRC, understand that price transactions differ between distributors and consumers when they buy from sellers. That is why our daily US HRC index has a three sub-index approach, taking inputs from sellers, distributors and consumers. Our unique approach ensures that our prices are representative of all the transactions within the physical market.
In the video below, our Steel Editor for North America, Grace Asenov, explains Fastmarkets’ approach to calculating the daily hot-rolled coil index, fob mill US and how our robust methodology produces a price that is truly reflective of the US domestic spot market.
To learn more, attend our webinar, “Insights to Drive Success in the 2020 US HRC Contract Season.” Register here.