The price bubble in the US steel market has inflated to its maximum - the only question is when it will burst
Hot rolled coil (HRC) prices in the US were flat this week on the back of plummeting demand and strong supply, ending a 23-week streak.
US Weekly Internal HRC Price Index, calculated by Argus remained unchanged at USD 1,200 per tonne ex-works. The lead time dropped to 7-8 weeks from 8-9 weeks.
HRC prices in the US are up 167% in five months from a low of $ 450 per unit on Aug 11, 2020.
According to market participants, although some positions are still in short supply in warehouses, the entire range of metal products can be purchased at manufacturers. Many service centers in the United States stopped purchasing after gaining during the excitement as much metal products as they could not sell until the second half of the year.
With prices at historic highs, many distributors became nervous about the tonnes ordered and the potential losses in the event of a sharp drop in prices.
Domestic prices for cold rolled coils (CRC) and hot dipped galvanized coils (HDG) in the US were flat at $ 1,350 per tonne ex-factory. Lead times dropped to 8-9 weeks from 8-10 weeks, and HDG lead times dropped from 10 to eight weeks.
HRC import prices in Houston were unchanged at $ 1,010 per standard rate.