Five factors to influence US HRC price in 2019

The hot-rolled coil market in the United States faces another important year in 2019, one that has already seen many unexpected developments, including a surprise decline in ferrous scrap prices in January.

While many factors will potentially influence the US HRC market, Fastmarkets AMM has summarized five of the most important developments that market participants should watch this year.

1. Increased domestic capacity
Several sheet expansions have been undertaken or announced over the past year, which Fastmarkets AMM estimates could boost US flat-rolled capacity by up to 16.5 million tons per year through 2022. Overall, the domestic market consumes around 130 million tpy of steel, with about half of that volume going into flat-rolled products.

Outside of the US, Sault Ste Marie, Ontario-based flat-rolled steelmaker Algoma also plans to spend estimated Canadian $300 million ($225.7 million) to expand capacity at its steel works. Stelco, another Canadian flat-rolled steel producer, is reportedly undertaking similar considerations.

As a result, sources have expressed their concerns over a  potential supply glut in the near future.

But to some the investment in flat-rolled supply ultimately reflects the kind...

Published

January 23, 2019

21:35 GMT

New York