US HRC: Steel prices rise despite holiday

US mills pushed hot-rolled coil (HRC) pricing further into the $1,600s/short ton (st), with strong demand continuing to drive price increases.

The Argus weekly domestic US HRC Midwest assessment rose by $35/st to $1,645/st ex-works. Lead times were flat at 6-9 weeks.

The Argus weekly domestic US HRC south assessment increased by $37.50/st to $1,637.50/st.

While the amount of trading was muted by the Memorial Day holiday, pricing continued to move up in the week prior as demand remained elevated.

The spread between #1 busheling scrap delivered US Midwest mills and HRC selling prices rose by 3.2pc to $1,142.77/st from $1,107.77/st the week before. The spread is more than five times higher than a year ago, when it was $224.71/st.

The Argus weekly domestic US cold-rolled coil (CRC) assessment increased by $27/st to $1,822/st, while the hot-dipped galvanized (HDG) assessment rose by $43.50/st to $1,831/st.

Lead times for CRC went to 10 weeks from 9-12 weeks, while HDG lead times rose to 10-12 weeks from 7-10 weeks.

The CME HRC Midwest futures market recovered some of the ground lost in the prior week, when futures prices crashed by three-digit amounts amid talks between the US and EU about easing trade tensions, including the possible lifting of US Section 232 25pc steel tariffs on the trading bloc. For July, prices rose by $53/st to $1,648/st, while August futures increased by $45/st to $1,570/st. September futures pricing jumped by $75/st to $1,505/st, while October pricing increased by $40/st to $1,400/st. November pricing rose by $53/st to $1,335/st.

HRC import prices into Houston rose by $14.25/st to $1,486.75/st ddp as global prices continued to rise.

Plate

The Argus weekly domestic US plate assessment rose by $4/st to $1,482.25/st delivered. Lead times expanded to 6-10 weeks from 6-9 weeks.