Posted on 17 Aug 2022
US hot-rolled coil (HRC) prices were flat this week as the market was split on sentiment, with a price increase announced last week struggling to find traction.
The Argus weekly domestic US HRC Midwest and southern assessments were flat at $812.25/short ton (st). Since mid-April, when HRC prices peaked at $1,500/st, the assessments have fallen by 46pc and were down by 49pc since the beginning of the year.
HRC lead times in the Midwest fell to 2-4 weeks from 3-4 weeks, with August availability still reported with just two weeks left in the month. The longest lead times were reported to be into mid-September.
One buyer reported buying a few hundred tons in the Midwest for $830/st, while a Midwest mill reported selling HRC between $825-850/st. Most offers were reported at $800/st and as high as $860/st.
One buyer reported buying a few thousand tons around $800/st.
Multiple steel buyers reported being disappointed with electric arc furnace steelmaker Nucor's $50/st price increase announced 8 August, the same day that #1 busheling prices fell by $70/gross ton (gt).
Large service centers said broadly that their wait-and-see strategies had not changed in the last week as they look to see if demand picks up.
Union negotiations between the United Steelworkers (USW) and integrated steelmakers Cleveland-Cliffs and US Steel restarted yesterday after taking some time off for a USW meeting.
In Canada the union leadership at integrated steelmaker Algoma Steel is taking the company's last and final offer to its membership for a vote later this month. At integrated competitor Stelco, one union has approved a contract, another is moving toward doing so, and the third and largest, USW Local 8782, is negotiating today with the company to attempt to come to an agreement.
The Argus HRC import assessment into Houston was flat at $820/st ddp on no new trades or offers.
The spread between #1 busheling scrap delivered US Midwest mills and HRC selling prices jumped by 11pc to $452/st on the back of declining scrap prices last week.
A year ago the spread was $1,326/st and was five weeks from hitting the peak spread of $1,441/st reached in mid-September.
The Argus weekly domestic US cold-rolled coil (CRC) assessment was flat at $1,136/st, while the hot dipped galvanized (HDG) coil assessment was also flat at $1,113.25/st. Transactions were limited and reported at $1,200-1,250/st, while offers were between $1,120-1,200/st.
Lead times for CRC rose slightly to 6-7 weeks from 6 weeks while HDG lead times increased to 6 weeks from 4-5 weeks.
The CME HRC Midwest futures market were mostly flat this week, with prices remaining in contango for the fourth consecutive week. October futures prices slipped by $5/st to $855/st, while November prices inched up by $2/st to $882/st. December prices fell by $10/st to $890/st, while January prices slipped by $16/st to $889/st. February futures inched up by $4 to $910/st, and March prices are at $910/st.
The Argus weekly domestic US ex-works plate assessment was down by $10/st to $1,730/st as platemakers held prices after a reduction last week. Lead times moderated to 4 weeks from 3-5 weeks.
The plate delivered assessment declined by $31.25/st to $1,760/st.
Source:Platts
