<article><p class="lead">US hot-rolled coil (HRC) prices continued to drop as service centers limited their buys amid pricing uncertainty.</p><p>The <i>Argus</i> weekly domestic US HRC Midwest assessment fell by $47/short ton to $1,465/st, the lowest since April 2021. The southern assessment dropped by $66/st to $1,450/st.</p><p>Buyers reported spending as little as $1,450/st, while offers ranged between $1,400-1,500/st.</p><p>Lead times in the Midwest fell to three weeks from 3-4 weeks, as service centers kept their spot purchases limited and stuck to their contract minimums.</p><p>The latest Covid-19 surge has impacted the market broadly, limiting the amount of labor available to produce products and crimping at least some demand. </p><p>Market participants reported that electric arc furnace (EAF) steelmaker Steel Dynamics (SDI) <a href="https://www.argusmedia.com/metals-platform/newsandanalysis/article/2292773-SDI-Texas-steel-mill-startup-pushed-back">would not start up the melt shop</a> at its new mill in Texas until February, the latest delay for the facility. SDI was originally planning to start melting in mid-2021. </p><p>HRC import prices into Houston fell by $15/st to $1,200/st ddp.</p><p>The spread between #1 busheling scrap delivered US Midwest mills and HRC selling prices edged up by less than a percent compared to the prior week to $990/st as the drop in HRC pricing was offset by $60/gross ton declines in prime scrap pricing during the January trade. A year ago the spread was $760/st.</p><p>The <i>Argus</i> weekly domestic US cold-rolled coil (CRC) assessment plummeted by $135/st to $1,915/st, reflecting corrections in pricing as the value-added product plays catch up with falling HRC prices. The hot-dipped galvanized (HDG) assessment rose by $20/st to $1,950/st.</p><p>Lead times for CRC slipped to 6-7 weeks from seven weeks while HDG lead times rose to seven weeks from 5-6 weeks.</p><p>The CME HRC Midwest futures market was down in the last week. March pricing fell by $42/st to $1,135/st, while April pricing fell by $34/st to $1,056/st. May futures pricing declined by $28/st to $1,032/st, while June pricing was down by $17/st to $1,008/st. July future pricing is at $985/st.</p><h3>Plate</h3><p class="lead">The <i>Argus</i> weekly domestic US plate assessment edged up by $5/st to $1,855/st delivered. Lead times extended to 4-6 weeks from 4-5 weeks.</p></article>
