<article><p class="lead">US prices for hot-rolled coil (HRC) continued to rise this week as mills held the line amid low spot buying between the Christmas and New Year's holidays.</p><p>The <i>Argus</i> weekly domestic US HRC index rose by $5/short ton (st) to $605/st ex-works Midwest today on four indications from buy and sell-side sources.</p><p>Lead times have slipped to 7-8 weeks, with few sales over the holidays weighing on demand and keeping lead times into late February or early March.</p><p>Prices inched up this week despite low spot buying over the holidays. Mills maintained offers, saying minimum spot prices were $600/st. Still, one buyer said volumes could still be found below just below $600/st. Some mills want to push for prices as high as $640/st. </p><p>Many service centers bought their HRC on long-term contract, where prices can be more than $50/st below the spot market.</p><p>Last week ArcelorMittal's Indiana Harbor East steel mill suffered an explosion at its 4.1mn st/yr No 4 basic oxygen furnace (BOF), shutting it down for an indeterminate amount of time. A local United Steelworkers district president said the pulpit, the BOF's control room, was heavily damaged in the accident.</p><p>HRC import prices into Houston rose to $640/st ddp as international steel prices have continued to rise and demand for imported HRC remained muted amid low domestic prices.</p><p>Plate prices increased by $7.50/st to $687.50/st as mills continued to try to push prices higher amid low demand.</p><p>The CME HRC futures market fell last week, with March HRC prices down by $1/st to $586/st while April future prices fell by $1/st to $585/st. May prices stayed flat at $585/st, while June HRC futures are at the same level. Futures prices for 2020 now top out at the $586 mark in February and March compared to last week's high of $590/st in August and September.</p><h3>Summary of market activity heard by Argus</h3><ul><li>HRC, US: Tradeable value at $610/st, ex-works Midwest, according to seller</li><li>HRC, US: Tradeable value at $590/st, ex-works Midwest, according to buyer</li><li>HRC, US: Tradeable value at $600/st, ex-works Midwest, according to buyer</li><li>HRC, US: Tradeable value at $620/st, ex-works Midwest, according to buyer</li></ul></article>
