<article><p class="lead">US hot rolled coil (HRC) prices slipped below $1,000/short ton (st) for the first time since February as shrinking lead times left mills hungry for orders. </p><p>The <i>Argus</i> weekly domestic US HRC Midwest assessment fell by $34.25/short ton (st) while the HRC southern assessment fell by $31/st. Both prices were at $989/st on an ex-works basis.</p><p>US HRC prices have fallen by 18pc since the peak of $1,200/st in April and were at the lowest level since 21 February.</p><p>Mill offers were starting to sink below $1,000/st for a couple hundred tons in some cases, according to buyers. Most mill offers were trending between $980-1,020/st for repeatable market activity.</p><p>There were continued discussions around larger-tonnage inquiries being bid in the low $900/st range but overall buying activity was limited with the extended Memorial Day holiday.</p><p>The range of offers varied by mills and regions. One buyer said a southern mill gave an offer at $1,000/st for 600st for late-July delivery. He noted that was the highest offer they had received as a Midwest mill was down to $900/st for a few thousand tons with June delivery. Offers were down from $1,070/st just two weeks ago, added the buyer.</p><p>Another buy-side source said mills were still trying to hold offers at $1,000/st but was able to buy a larger order at $950/st of pickled and oiled HRC. </p><p>The weekly <i>Argus</i> US HRC lead time average dropped to 2-4 weeks from 5-6 weeks as mills were still attempting to book June orderbooks. Lead times have shrunk noticeably since a peak of 8-10 weeks at the end of March.</p><p>The shrinking lead times were a result of buyers being hesitant to put in any additional orders over contracted tons, according to a mill source. He noted there was still June availability at multiple mills, while only one was into early July. </p><p>Still, he was not seeing overall demand deteriorate as much as pricing suggests as their OEM customers continued to post healthy shipments. </p><p>A service center source also agreed with the mills demand outlook and said they were poised to post its best May shipment month ever. Others were less bullish but said demand has been more resilient than expected.</p><p>While overall spot prices have weakened, the CME US HRC forward curve resumed its drops along with falling spot prices, with prices down by $11-20/st for the rest of the year. </p><p>The weekly <i>Argus</i> US HRC import price fell by $40/st to $800/st on a ddp Houston basis on lower indicated values. Some offers were heard as low as $700/st ddp Houston for September and October delivery but no buying activity was confirmed at the lower levels.</p><h3>Plate</h3><p>The <i>Argus</i> weekly domestic US ex-works plate assessment was flat at $1,570/st as electric arc furnace (EAF) steelmaker Nucor kept its July prices unchanged at that level last week.</p><p>Lead times fell to 5-6 weeks from 6-7 weeks, as Nucor opened its July books.</p><p>The <i>Argus</i> US delivered plate assessment edged up by $3.75/st to $1,638.75/st as offers were in a range of $1,600-1,650/st.</p></article>
