Fundamental Report
Supply-Side Takeaway: Import arrivals for January are indicating slight easing, while domestic production pulled back once again. Global prices showed some signs of life, leading to a contraction in the Domestic – Global spread.
This week’s data: The Domestic – Global HRC price differential contracted as the domestic spot price retreated while the global average price increased. On the imports side, January arrivals indicate a slight easing from December’s preliminary estimate, which continue to show a sharp rebound. Domestic production eased again, maintaining subdued levels.
HRC Spot Prices – US Domestic & Global
- The global HRC spot price rose to $631 from $627. This week the price changes were from: +$15 in China, +$8 in Korea, +$8 in Europe, and -$3 in Turkey.
- The Domestic – Global HRC spread contracted, narrowing to $58.84 from $73.50.
Total Sheet Imports (s.ton)
- This week’s imports estimated sheet arrivals for January indicate a slight easing, falling to 881k tons from December’s preliminary figure of 888k.
- The named countries from the filed trade petition represent nearly 80% of the expected total arrivals for coated products in 2024.
Domestic Production (s.ton)
- For the week ending on January 18th, capacity utilization ticked down by 0.7% to 73.8% and domestic raw steel production fell to 1.644m from 1.659m/tpw.
- This brings the year-to-date production to 4.237m, operating at a rate of 74.0%, +1.1% above this point last year.