US HRC: Prices slip as spot market remains quiet

US prices for hot-rolled coil (HRC) fell this week for the first time since October as a push by mills to increase spot pricing faltered amid little spot market buying.

The Argus weekly domestic US HRC index fell by $4.50/st to $615/st ex-works Midwest today on eight indications from buy and sell-side sources.

Lead times slipped to 7-8 weeks from 8 weeks, as the market participants reported limited spot orders over the last two weeks.

Steel buyers are still trying to buy on contract to avoid the higher HRC prices in the spot market. One steel service center said that contract buying was what pushed out lead times, a sign that price increases could be short lived.

HRC import prices into Houston fell by $16.75/st to $650/st ddp as demand for imported HRC remains muted amid lower domestic prices.

Plate prices stayed flat at $680/st.

The CME HRC futures market fell compared to last week, with March HRC prices down by $11/st to $575/st while April future prices dropped by $22/st to $560/st. May prices fell by $20/st to $559/st, while June HRC futures fell by $18/st to $558/st. Just a week before the end of January futures prices for the rest of 2020 top out at the $594/st mark in February, down by $10/st compared to last week's high of $604/st.

Summary of market activity heard by Argus

• HRC, US: Tradeable value at $640/st, ex-works Midwest, according to seller
• HRC, US: Tradeable value at $605/st, ex-works Midwest, according to buyer
• HRC, US: Tradeable value at $620/st, ex-works Midwest, according to buyer
• HRC, US: Tradeable value at $615/st, ex-works Midwest, according to buyer
• HRC, US: Tradeable value at $610/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 $630/st, ex-works Midwest, according to buyer
• HRC, US: Tradeable value at $600/st, ex-works Midwest, according to buyer