US HRC: Prices flat, market stagnates

Market: Metals
08/08/23

US hot rolled coil (HRC) prices were flat as the market stagnated on limited transactions and offers.

The Argus weekly domestic US HRC Midwest and southern assessments were flat at $820/short ton (st) on an ex-works basis. HRC prices are down by 32pc since the peak of $1,200/st in April.

Worries about a possible United Auto Workers (UAW) strike at US automakers Ford, General Motors and Stellantis grew this week after the union said it would push for an end to the tiered system of membership, pay increases of 40pc, and other demands. The current contract expires on 14 September.

This week AutoForecast Solutions increased the amount of lost auto builds in North America for 2023 by 40,000 units to 342,000 vehicles. Another 300,000 vehicles are listed as at-risk.

In the Midwest, repeatable offers and assessed numbers were between $800-840/st. One service center reported being offered a single coil from a mill at an HRC base price of $840/st, while another was offered 200st of HRC for $830/st.

In the south a service center reported paying $820/st for 900st of HRC while repeatable offers were between $780-840/st for 100-1,000st.

The weekly Argus US HRC Midwest lead time average was down to five weeks from 5-6 weeks as mill order books remained relatively stagnant.

The weekly Argus US HRC import price fell by $20/st to $700/st on a ddp Houston basis, with interest in imports continuing to be low with lead times into the fourth quarter.

Plate

The Argus weekly domestic US ex-works plate assessment remained flat at $1,570/st as mills matched Nucor's price levels it announced on 31 July.

Lead times fell to 5-7 weeks from 5-8 weeks.

The Argus US delivered plate assessment was flat at $1,620/st.

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