US Midwest spot HRC prices drop to near 12-year low during November
Spot hot rolled coil prices in the US Midwest market fell to a near 12-year low during November as seller woes continued despite recent action by domestic steelmakers against perceived unfair trade activity, said The Steel Index.
Whilst the flow of imports steadily slows each month, a glut of domestic steel and shortening delivery lead-times continue to negatively weigh on prices.
After hot rolled coil (HRC) prices breached the US$400/short ton floor in late October, November spot prices plummeted a further US$29/s. ton FOB Midwest Mill over a four-week period to US$364/s. ton.
Seller woes continued throughout the month despite recently filed trade action against foreign imports. The move was initially thought to bolster sentiment for domestic steel producers in the short-term, but this failed to materialise.
The resulting fall saw spot prices hit new record lows—last month the index was the lowest since 2009, while this month prices were at the lowest point since January 2004.
The Metals Service Center Institute (MSCI) showed that service center inventories slipped below the 9 million short ton mark for the first time since July 2014, falling 4.2% compared to the same period last year.