Prices for hot-rolled and cold-rolled coils in the US have risen slightly this week, along with an increase in production volumes. Demand for these products in the country is still calm.
Currently, deals for hot rolled coil (HRC) are in the range of $640-670 per short ton of Ex-Works. Last week, this level was $630-650. Cold-rolled coil prices rose to $1000-1020 per short tonne, up from $990-1000 the previous week. For both types of products, this is the first positive week since April.
US steelmaker Nucor has raised HRC prices for two weeks in a row, indicating a change in trends. Market sources agree that the market seems to be accepting higher prices, but transactions are few and far between.
A representative of a large service center in the Midwest says that prices may rise gradually, but with demand low, any increase is positive for producers. In addition, futures point to a price increase in 2025. Therefore, he considers $650 per short ton to be a good price compared to more than $800/t that will be offered next year on the Chicago Mercantile Exchange (CME). However, the insider is not convinced that the market is changing quickly.
At the same time, market sources believe the cold-rolled coil market is more stable.
As GMK Center reported earlier, global hot-rolled coil prices continued to fall in July. In the North American market, they dropped by 7.1% to $650/tonne Ex-Works over the month, which is a three-month drop in a row. Local producers complain of weak demand due to a seasonal decline in steel consumption. At the same time, the supply of products remains high. Market participants expect the price situation to improve in September.
Courtesy: https://gmk.center/en
