Posted on 08 Sep 2022
US hot-rolled coil (HRC) prices were flat this week as the Labor Day holiday weekend paused buying amid weak demand.
The Argus weekly domestic US HRC Midwest assessment was flat at $780/short ton (st), while the southern assessment was flat at $797.75/st. Since mid-April, when HRC prices peaked at $1,500/st, the Midwest and southern assessments are down by 48pc and 47pc, respectively.
HRC lead times in the Midwest were flat at 3-5 weeks.
The Labor Day holiday weekend yesterday kept market activity limited. Offers were heard in a wide range between $780/st and $900/st. Most were between $800-830/st.
Last week on 31 August, the United Steelworkers (USW) and integrated steelmaker US Steel indefinitely extended their contract which expired 1 September. No strike action has been announced by the union, and US Steel has not indicated they would order a lockout.
If either side decides to walk away from the negotiating table, a 48 hour notice would have to be given.
Most sources have indicated a strike action at US Steel mills would lead to immediate reaction by the market and to prices increasing.
The Argus HRC import assessment into Houston fell by $20/st to $820/st ddp.
The spread between #1 busheling scrap delivered US Midwest mills and HRC selling prices was flat at $419/st.
A year ago the spread was $1,386/st and was a few weeks from hitting the peak spread of $1,441/st reached in mid-September.
The Argus weekly domestic US cold-rolled coil (CRC) assessment fell by $30/st to $1,066.75/st, while the hot dipped galvanized (HDG) coil assessment fell by $23/st to $1,065/st. It is the lowest price levels for value-added products since mid December 2020.
Lead times for CRC were flat at 6-7 weeks while HDG lead times rose to 6-7 weeks from 6 weeks.
The CME HRC Midwest futures market was down in the last week, with prices remaining in contango for a seventh consecutive week but their spread with current spot prices further narrowing. October futures prices dropped by $25/st to $790/st, while November prices fell by $22/st to $805/st. December prices declined by $20/st to $810/st, while January prices dropped by $35/st to $815/st. February futures fell by $34 to $832/st, and March prices declined by $36/st to $835/st.
The Argus weekly domestic US ex-works plate assessment was up by $10/st to $1,740/st as Nucor kept its discrete plate pricing flat at that level. Lead times widened to 3-5 weeks from four weeks.
The plate delivered assessment rose by $15/st to $1,790/st.
Source:Argus Media
