<article><p class="lead">US hot-rolled coil (HRC) prices jumped this week as mills aimed for higher prices in January amid increasingly limited supply.</p><p>The <i>Argus</i> weekly domestic US HRC index rose by $65/short ton (st) to $820/st ex-works Midwest this week, the largest increase <i>Argus</i> assessment has ever recorded. Lead times were flat at 8-9 weeks. The spot price is the highest since November 2018, and is up by 82pc since a yearly low of $450/st recorded in mid-August.</p><p>One large service center bought 10,000st of HRC from a non-Midwest electric arc furnace (EAF) minimill for $840/st for January delivery. The buyer said options were slim, with many mills essentially booked for January and holding off opening up their February books to secure higher prices. </p><p>Integrated steelmakers ArcelorMittal and US Steel pushed prices as high as $850/st for January, according to market participants. With little to no spot availability, steel buyers have wondered whether the higher offers mean anything if there is no supply available. </p><p>Some manufacturers may be impacted in December because of a lack of steel, said one market participant. Many are still waiting for months of backorders, delayed by steelmakers because of the rush of buying over the last three months. </p><p>The ferrous scrap trade is expected to begin this week, with #1 busheling delivered US Midwest expected to increase by as much as $50/gross ton (gt), in large part to keep up with gains in finished steel prices. </p><p>The spread between #1 busheling scrap delivered US Midwest mills and HRC selling prices was $556.61/st, 13pc higher than the spread of $491.61/st from the week before and 59pc higher than the $349.46/st recorded a year ago.</p><p>The domestic US cold-rolled coil (CRC) assessment rose by $60/st to $970/st ex-works, and the hot-dipped galvanized (HDG) coil assessment increased by $55/st to $970/st. Lead times for CRC and HDG expanded to 10-12 weeks from 12 weeks.</p><p>HRC import prices into Houston increased by $60/st to $800/st ddp on continued increases in foreign pricing.</p><p>The CME HRC futures market mostly posted gains in the last week, with January futures jumping up by $21/st to $841/st and February prices increasing by $16/st to $821/st. March prices slipped by $1/st to $799/st, while April prices rose by $13/st to $770/st. May futures prices rose by $6/st to $746/st, while June prices increased by $3/st to $738/st.</p><h3>Plate</h3><p>The <i>Argus</i> weekly domestic US plate assessment rose by $63.25/st to $770/st on the week on the back of a price increase from Nucor as plate mills attempt to keep pace with HRC increases. Lead times broadened to 6-8 weeks from 8 weeks.</p></article>
