US HRC price hits more than 20-month high of $35.19/cwt

Hot-rolled coil spot prices in the United States have surpassed $35 per hundredweight for the first time since March 2019.

Fastmarkets’ daily steel hot-rolled coil index, fob mill US was calculated at $35.19 per hundredweight ($703.80 per short ton) on Monday November 9, up by 2.2% from $34.43 per cwt on November 6 and by 2.9% from $34.21 per cwt on November 2. This marks the highest level since the index was calculated at $35.38 per cwt on February 26, 2019.

Additionally, hot band prices have increased by 60.8% from the 2020 low of $21.89 per cwt on April 30.

Heard in the market
Very limited availability continues to be the main storyline in the current spot market, with sources noting that spot supplies are becoming tighter by the day while mills deliver orders behind schedule. Lead times range from scant availability in December to January of next year, with two mills already closing their order books for January 2021.

Mills are said to be firmly in the driver’s seat with regard to spot pricing, with a small increase in raw material costs following this month’s ferrous scrap trade and strong end-market demand working in tandem to compel hot-rolled steel producers to slowly adjust pricing upward.

In terms of demand, activity within the automotive sector should remain elevated through year end, with a major automotive producer reportedly opting to keep at least one facility online throughout December. Automotive plants typically go offline for a short period during the holiday season. 

Quotes of the day
“[It’s a] tough environment; Demand [is] coming back faster than domestic mills have been able to bring supply back [online]… Mills hold all the power at the moment,” a southern service center source said.

“I have seen coil availability become very spotty on my end… Even at the service center level, material is becoming tighter daily with mills delivering late on promised orders,” a second southern service center source said. “Hearing ‘allocation’ for the first time this year other than for toilet paper and bottled water is very interesting.”

Index calculation
Fresh inputs were received in a narrow range of $34.75-36 per cwt across all three sub-indices.

What to read next
The United States' copper recycling industry is ramping up pressure on policymakers to impose some form of export controls on high-purity copper scrap, arguing that current trade dynamics – particularly with China – are distorting prices, weakening domestic capacity and undermining national security goals.
After a month-long consultation period, Fastmarkets is amending the below specifications, following no negative feedback from market participants and internal data analysis. The following changes will take place: The new specifications are as follows, with amendments in italics: MB-CU-0002 Copper grade 1 cathode premium, ddp Midwest US, US cents/lb Quality: Grade A 99.9935% min copper cathode conforming to LME […]
Explore the implications of the 50% tariff on the pulp market, impacting trade dynamics and costs for industries reliant on pulp.
The global copper market has finally received the widely anticipated news that imports to the US will be tariffed from August 1. The finer details of the tariffs, including their scope, and whether key copper-exporting nations like Chile, Canada and Peru will be exempt, remain unclear.
Understand how recent tariff decisions are affecting the European pulp and paper industry and trade with the US market.
Information came to light that mill buying offers had been adjusted for July following Fastmarkets’ settlement of these prices on that date, leading to an incorrect published assessment for the following grades: MB-STE-0789 Steel scrap No1 heavy melting, consumer buying price, fob Montreal, Canadian $/net ton was previously published at C$245 ($179.41) per net ton, a C$10 […]