US HRC: Prices fall to February levels

US hot-rolled coil (HRC) prices have fallen into a similar range as to where they were in February, prior to raw material supply shortage concerns brought on by the conflict in Europe.

The Argus weekly domestic US HRC Midwest and southern assessments dropped by $83.50/short ton (st) and $84.75/st, respectively, to $1,034/st. HRC prices have now fallen by 31pc since hitting a peak of $1,500/st between 5-19 April.

HRC lead times in the Midwest were flat at 3-4 weeks, with buyers limiting their spot buys partially because of the shorter lead times.

One buyer said that June lead times were available as recently as last week at some mills.

Offers were heard in a range between $1,000-1,100/st.

While demand remains steady service centers continue to act cautiously with purchases, continuing to prioritize reducing inventory as the trajectory of the US economy remains uncertain.

The Argus HRC import assessment into Houston edged down by $2/st to $900/st ddp.

Service centers report concern over raw material price pressures, with those products coming under increasing downward price pressure.

Last week the Argus pig iron cfr New Orleans assessment plummeted by $105/metric tonne (t) to $645/t on a sale from Brazil, within $100 of pre-conflict price levels.

The spread between #1 busheling scrap delivered US Midwest mills and HRC selling prices fell by 15pc to $477/st. A year ago the spread was $1,123/st and was still months from hitting the peak spread of $1,441/st reached in mid-September.

The Argus weekly domestic US cold-rolled coil (CRC) assessment rose by $70/st to $1,600/st and is seen as the stronger of the two value-add products, while the hot dipped galvanized (HDG) coil assessment fell further by $82.50/st to $1,439.50/st.

Lead times for CRC were flat at 6-7 weeks while HDG lead times fell to 5-6 weeks from 6-7 weeks.

The CME HRC Midwest futures market were down in the last week. August futures fell by $30/st to $950/st, while September futures dropped by $43/st to $922/st. October futures fell by $25/st to $910/st, and November pricing declined by $13/st to $912/st. December pricing fell by $13/st to $911/st, and January pricing was flat at $911/st.

Plate

The Argus weekly domestic US ex-works plate assessment fell by $22.50/st to $1,837.50/st.

The plate delivered assessment dropped by $67.25/st to $1,887/st. Lead times tightened to 4-5 weeks from 3-6 weeks.