Posted on 09 Feb 2022
US hot-rolled coil (HRC) prices continued to fall this week as lower priced offers were reported and the spot market remained limited.
The Argus weekly domestic US HRC Midwest assessment dropped by $106.50/short ton to $1,142.50/st, the lowest since a year ago. The southern assessment dropped by $92.50/st to $1,142.50/st
HRC import prices into Houston dropped by $92.50/st to $920/st ddp on lower priced South Korean imports.
Lead times in the Midwest were flat at 2-3 weeks, with steelmakers said to have production available at the end of February and early March.
One mill reportedly offered a low of $1,040/st for 100st of HRC in the south, prices that were attainable in the Midwest as well.
Service centers were working through overbuilt inventories. Some think a contraction of imports combined with a lack of service center buys from domestic mills could lead to a supply shock in the coming months.
Steel mills continued attempts to cut supply to the market, with integrated steelmaker Cleveland-Cliffs reportedly taking a blast furnace down at their Cleveland steel mill for 90 days beginning in March. That could take up to 350,000st of raw steel production out of the market.
The spread between #1 busheling scrap delivered US Midwest mills and HRC selling prices dropped by 12pc to $683/st, the lowest level early January 2021. A year ago the spread was $780/st.
The Argus weekly domestic US cold-rolled coil (CRC) assessment dropped by $127.50/st to $1,600/st, while the hot-dipped galvanized (HDG) assessment fell by $132/st to $1,495/st.
Lead times for CRC and HDG edged up to 6-7 weeks from 5-6 weeks.
The CME HRC Midwest futures market was up in the last week. March pricing rose by $15/st to $1,005/st, while April pricing increased by $11/st to $971/st. May futures pricing was up by $15/st to $960/st, while June pricing rose by $10/st to $940/st. July future pricing moved up by $10/st to $925/st.
The Argus weekly domestic US ex-works plate assessment was flat at $1,815/st as plate makers fought to keep prices stable. The plate delivered assessment fell by $27.50/st to $1,857.50/st delivered. Lead times widened to 4-7 weeks from 5-6 weeks.
Source:Platts
