The US hot-rolled coil steel sheet market Wednesday saw prices trend move down for the second time this week as buyers and at least one producer reported lower offers and transaction prices.
One Midwestern service center source said HRC prices at $700/st were "out the window," adding that buyers are starting to challenge pricing a lot more than they were throughout last month and that tons are actively being sold closer to the $680/st level.
A Southern service center source remarked that the $700/st pricing for HRC was "in the rearview mirror right now," and said he would not be still buying at that level but did recently have a transaction at $690/st.
A source at one major producer noted that earlier reports this week of transaction at $660/st "might be a stretch, but sub-$680 is definitely out there and quite common," adding that he hated to say that "but it's the truth."
He reported two separate sales, both above Platts size specification, at $670/st.
A separate Midwest service center source agreed that the market had hit the top end, but saw no need for either buyers or producers to panic.
He said mills had worked very hard to increase prices and that this will be a "painfully slow drop" in pricing. "I am still not sure where I can get a quick turnaround for an order," he said.
The source went on to say that he is has been able to buy at $680/st in the market for varying quantities but has had issues negotiating prices lower than that, adding that normal buys were between $680-690/st.
A Northern service center source also reported seeing lower Canadian offers for HRC saying that "we have seen a few 'bargains' at around C$750/st (US$687/st)."
One buyer said he still believed that $700/st HRC sales were being sold from at least two major integrated mills in the Midwest but pointed to limited spot availability and customer directed buys to those mills as reasons allowing them to capture the higher prices.
"If you only have so much, why offer it lower," he asked.
Platts lowered its HRC assessment to $680-695/st down from $685-700/st previously, while maintaining its cold-rolled coil assessment at $810-820/st.
All prices normalized to a Midwest (Indiana) ex-works basis.
