Today, the price of hot-rolled coil (HRC) in the U.S. Midwest fell to $710/short ton EXW ($782/ton). The current market demand remains subdued, and HRC prices are expected to see an upward trend by early 2025. Some customers have already started placing orders for early 2025, with a delivery lead time of approximately three weeks.
In the U.S. South, HRC prices are stable at $720/short ton ($794/ton), showing a week-over-week increase of 0.36%. However, the spot market remains quiet, with several factors contributing to the slow pace of transactions:
- Steel mills maintaining firm pricing
- Weakening demand
- Heightened uncertainty due to the upcoming U.S. presidential election
These factors have significantly impacted market activity.
Potential Impact of the Presidential Election
- If Trump is elected, there is potential for tariffs on all products from Mexico. Additionally, during an August rally in North Carolina, he stated his intention to impose a 10-20% tariff on all imported goods, which could substantially increase import costs.
- On the other hand, a victory by Harris might lead to a drastically different outcome for the steel industry.
Imports Struggling to Compete
Regarding imports, hot-rolled coil prices range from $660 to $680/short ton ($728-$750/ton). Most imports come from South Korea, but they lack a strong competitive advantage compared to domestic prices.
LangZo Steel will continue to monitor these developments closely to adapt our strategies and better serve our customers amid changing market dynamics.
