UNITED STATES December 12 2016 10:35 AM

NEW YORK (Scrap Register): US HR coil prices plunged to $540 a short ton FOB Midwest Mill during the week ended September 30, while major US steel scrap commodities prices on Scrap Register Price Index stayed flat.

The price of US HR coil took a tumble during the week as TSI’s index ended at $540 a short ton FOB Midwest mill. 

A bearish scrap market and soft end-user market demand both continue to put pressure on finished steel prices, and the futures market is expecting the price of HRC to decrease steadily into 2017.

Announcements by OPEC this week that it would cut production increased the price of oil, providing a glimmer of hope that steel demand in the energy end-user market will return to previously buoyant levels in the near future.

However, the prices of major steel scrap commodities like #1 HMS, #1/#2 HMS 80/20 and steel casting showed an almost flat trend on Scrap Register US Price Index during the week.