US HRC: Steel prices rise, buying limited

US prices for hot-rolled coil (HRC) continued to rise into the Thanksgiving holiday week, as mills continued to hold offers higher in an inactive spot market.

The Argus weekly domestic US HRC index rose by $7.50/st to $546/st ex-works Midwest today on two bids and three indications from buy- and sell-side sources. Prices have risen for five consecutive weeks.

Lead times stayed steady at 6-7 weeks, as most mills remained booked through early or mid-January, though at least one mill still had availability at the end of December.

While US Steel and ArcelorMittal pushed a third round of price increases last week, no other steel producers appear to have followed. Lead times have remained relatively steady in the last few weeks. Most service centers have not entered the spot market in a month, having bought large amounts of material before or during the first price increase.

Few steel buyers believe they will have to start looking to the spot market until at least mid-December.

HRC import prices into Houston rose by $28/st to $568/st ddp as global prices have continued to increase. US demand for imports has continued to lag due to three month lead times and low domestic prices.

Plate prices rose by $21.50/st to $626.50/st as a second $40/st price increase was issued last week by SSAB. A first price increase failed to set a floor, and buyers were skeptical about the second price push. Few reported buying plate on the spot market.

The CME HRC futures market fell in the last week, with January futures for HRC down by $7/st to $555/st, while February prices fell by $17/st to $557/st. March HRC prices fell by $16/st to $560/st, and April future prices were at $567/st. Futures prices now top out at a high of $578/st through all of 2020, down by $12/st compared to the previous week.

Summary of market activity heard by Argus

• HRC, US: Tradeable value at $555/st, ex-works Midwest, according to seller
• HRC, US: Tradeable value at $560/st, ex-works Midwest, according to seller
• HRC, US: Tradeable value at $525/st, ex-works Midwest, according to buyer
• HRC, US: Tradeable value at $540/st, ex-works Midwest, according to buyer
• HRC, US: Tradeable value at $550/st, ex-works Midwest, according to buyer