The price of hot-rolled coil (HRC) in the U.S. Midwest market has experienced a notable increase, rising 1.94% from last week, with a cumulative increase of 13.55% since mid-July. This upward movement in prices reflects an improvement in demand, albeit from a low base earlier in the year. Market insiders report, however, that steel mills have not yet adjusted their base prices, anticipating the need for stability in the face of ongoing market uncertainties.
Despite the recent uptick, trading volumes remain insufficient for robust data analysis, and market participants expect HRC prices to stabilize in the upcoming weeks. Contributing factors to the future price landscape include production cuts by mills, tepid demand from equipment manufacturers, and low scrap steel prices. These elements are expected to play a significant role in shaping the trajectory of HRC prices moving forward.
Local distributors have expressed cautious optimism about the recovery in demand but do not foresee a significant fluctuation in prices. They predict a gradual increase in HRC prices without sharp rises or drops, suggesting a slow but steady approach to market recovery as industries adjust to the evolving economic conditions.
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