Pricing for domestically produced steel coil in the US has declined again after market participants reported further evidence of mill discounting, Kallanish hears. 

Hot rolled coil prices are transacting within the range of $690-710/short ton, down from $710-730/st the week before. Cold rolled coil prices dipped to $1,050-1,090/st from $1,070-1,100/st.

One mill source confirms that spot prices are decreasing despite competitors' efforts to control expectations through a regularly announced HRC price. Nucor’s weekly Consumer Spot Price (CSP) for 17 June formally reduced spot pricing by $5/st.

“It does not look like the mill pricing transparency efforts have put any bottom in place,” the mill source says. 

A midwestern steel service centre operator details an incident this week in which a loyal customer was offered a deep discount from a mill. The service centre could not compete with the discount and lost the sale of a few hundred short tons.

“Inventory must be seriously out of balance for this kind of mill deal,” says the service centre source. “They’re maybe booking a discount for hundreds of thousands of tons, meanwhile not sending the steel for at least a month, but offering it all before three months.” 

The method described is advantageous for mills because it gives them product on hand, allows for better inventory control, and guarantees income, according to the service centre source.

In the equivalent week of 2023, HRC transacted within the range of $900-950/st and CRC was $1,200-1,300/st. 

All prices are ex-works domestic mill.