US HRC: Prices edge up on firm offers

US hot-rolled coil (HRC) prices rose this week on higher sales and offers from mills after the Thanksgiving holiday.

The Argus weekly domestic US HRC Midwest and southern assessments both rose by $20/short ton to $1,800/st, reversing four weeks of declines.

Sales of $1,820-1,835/st for December were reported, with offers as low as $1,760/st and as high as $1,840/st.

Lead times in the Midwest fell to four weeks from 4-5 weeks with some mills still reported to be offering December tons.

Consumers continued to mostly work off of contract tons, with spot market activity limited as participants return from the Thanksgiving holiday.

Some service centers were more bullish about the steel market, with some expecting demand to pick up more as more mills push HRC lead times into January.

HRC import prices into Houston were flat at $1,410/st ddp as offers into the US dried up.

The spread between #1 busheling scrap delivered US Midwest mills and HRC selling prices edged up by 1.6pc compared to the prior week to $1,271/st on increased HRC pricing. It is more than double compared to the $492/st from a year ago.

The Argus weekly domestic US cold-rolled coil (CRC) assessment edged down by $5/st to $2,140/st while the hot-dipped galvanized (HDG) assessment fell by $11/st to $2,135/st. While the spread between HRC and value-add products tightened, it has remained well above historical spreads of $200/st.

Lead times for CRC fell to 7-8 weeks from 9-10 weeks while HDG lead times dropped to 6-8 weeks from 10-12 weeks, with Steel Dynamics reportedly offering galvanized tons for December.

The CME HRC Midwest futures market declined sharply in the last week. The January futures price dropped by $62/st to $1,476/st, while February pricing fell by $48/st to $1,397/st. March pricing plunged by $94/st to $1,260/st, while April pricing also fell steeply by $95/st to $1,200/st. May futures pricing dropped by $82/st to $1,188/st.

Plate

The Argus weekly domestic US plate assessment was flat at $1,900/st delivered. Lead times expanded to 5-8 weeks from 6-8 weeks.