Posted on 23 Feb 2022
US hot-rolled coil (HRC) prices halted their declines this week as the spot market remained thin as buyers felt for a bottom.
The Argus weekly domestic US HRC Midwest and southern assessments both were flat at $1,029.25/short ton (st), halting a six week slide that began after the New Year.
HRC import prices into Houston were also flat at $1,100/st ddp.
HRC lead times in the Midwest edged up slightly to 2-4 weeks from 2-3 weeks.
The market is working to digest the news announced yesterday by integrated steelmaker Cleveland-Cliffs that it will indefinitely idle its 2.1mn st/yr No. 4 blast furnace at its Indiana Harbor complex in the second quarter.
The company also announced a $50/st price increase on all HRC, cold rolled coil (CRC) and hot dipped galvanized (HDG) coil products.
The dual announcements were made as many were out for the President's Day holiday, and market participants were skeptical about what traction Cleveland-Cliffs would gain from the price increase.
The spread between #1 busheling scrap delivered US Midwest mills and HRC selling prices was flat at $583/st. A year ago the spread was $800/st.
The Argus weekly domestic US cold-rolled coil (CRC) assessment was flat at $1,535/st, while the hot-dipped galvanized (HDG) assessment increased by $62/st to $1,557/st. Limited inputs included offers at this level and in a broad range below, while sales above this level were also reported.
Lead times for CRC and HDG increased to 7-8 weeks from 6-7 weeks.
The CME HRC Midwest futures market was mostly down in the last week. April pricing fell by $20/st to $965/st, while May futures pricing declined by $22/st to $962/st. June pricing slipped by $5/st to $960/st, while July future pricing was flat at $960/st. August futures pricing fell by $13/st to $947/st.
The Argus weekly domestic US ex-works plate assessment was flat at $1,815/st as plate makers continued to hold off making their next price announcement, which is expected at the end of this week. The plate delivered assessment edged up slightly by $2.50/st to $1,860/st delivered. Lead times extended to 4-6 weeks from 3-6 weeks.
Source:Argus Media
