US hot-rolled coil (HRC) spot prices rose for the third consecutive week as mills realized more of formal price increases on strong demand.

The Argus weekly domestic US HRC index rose by $15/st to $588/st ex-works Midwest today on eight indications from buy- and sell-side sources.

Lead times edged down to 5-6 weeks from 5-7 in the prior week. Many mills are booked through at least mid-September after a rush of buying from service centers. Mills are still pushing for prices at and above $600/st, and one buyer said they transacted at $600/st for a 90st load.

One buyer said demand for yellow goods and agricultural products had slowed, though overall demand is good.

Ferrous scrap prices are expected to increase around $20/st in the August buy, which will start over the next week.

The price increase comes after three rounds of flat-rolled price increases by major US steelmakers like electric-arc furnace (EAF) steelmaker Nucor and integrated steelmakers ArcelorMittal and US Steel.

Prices have risen by 13pc since hitting a low of $521.75/st for the week ending 25 June. The June low came after a $218.25/st drop since the beginning of the year.

US Federal Reserve policymakers began a two-day meeting today, amid expectations of a quarter-point cut to its benchmark interest rate at the end of the meeting. A rate cut would be the first since late 2008 and would follow nine quarter-point increases over three years ending in December 2018. The Fed has said it is intent on maintaining the decade-long economic expansion amid signs of slowing US and global growth, exacerbated by weakening trade prompted by the trade tensions.

After weeks of stagnation prices for HRC imports into Houston increased $65/st to $605/st as importers pushed up prices to keep pace with domestic increases. Despite the price increases importers said many foreign producers were still out of the market due to import offers being above the domestic US price with the 25pc Section 232 steel tariff tacked on and import lead times of three months. Preliminary June steel imports into the US were 1.84mn t (2.02mn st), a 19pc decline compared to the 2.26mn t imported in June 2018, according to the US Department of Commerce. Steel exporter to the US had taken out 2.47mn t of licenses in June, making the preliminary June data 26pc below the license data.

The CME HRC futures market for September fell by $5/st to $610/st. October prices fell by $5/st to $615/st, while HRC futures for November fell $1/st to $619/st. Steel traders expect HRC prices will be at $620/st by the end of the year.

Summary of market activity heard by Argus

• HRC, US: Tradeable value at $580/st ex-works Midwest, according to seller
• HRC, US: Tradeable value at $600/st ex-works Midwest, according to seller
• HRC, US: Tradeable value at $580/st ex-works Midwest, according to buyer
• HRC, US: Tradeable value at $590/st ex-works Midwest, according to buyer
• HRC, US: Tradeable value at $580/st ex-works Midwest, according to buyer
• HRC, US: Tradeable value at $600/st ex-works Midwest, according to buyer
• HRC, US: Tradeable value at $585/st ex-works Midwest, according to buyer
• HRC, US: Tradeable value at $590/st ex-works Midwest, according to buyer