Prices for hot-rolled coil in the US decreased on Wednesday, as sources in the steel sheet market said buyers and sellers were heard to be transacting the bulk of deals slightly below Platts' previous assessment.
Platts lowered its HRC assessment to $665-675/st on Wednesday, down from $670-680/st, as transactions at $680/st were becoming scarcer in the market and most sales centered on $670/st. However, Platts maintained its cold-rolled coil assessment at $790-800/st. All prices are normalized to a Midwest (Indiana) ex-works basis.
A top-tier producer said he is no longer seeing HRC at $680/st anywhere in the market and had not been selling at that price.
The producer said sales of HRC in the South on Tuesday were at $660/st for volumes ranging between 150 st and just under 600 st. The producer noted its average selling price in the South is typically $10-15 below Midwest pricing due to freight costs.
A Midwest buyer said he approached an integrated mill in the region with 500 st of HRC and was initially offered $680/st but did not buy at this price as he suspected he would be able to get better pricing.
The buyer noted the producer still had September availability for HRC, while some mini-mills in the Midwest were almost out of October HRC.
A second Midwest buyer who has limited recent buying said he is hearing $670/st "is the going rate [for HRC] with very little room for negotiation or much of any discount for larger tonnages."
A Midwest producer said he sold some small tons at $680/st, however, he added, "the vast majority of our September business was booked at $670/st."
