US HRC: Prices continue to fall, demand weak

US hot-rolled coil (HRC) prices continued to fall this week on the back of weakening demand and few positive signs in the market.

The Argus weekly domestic US HRC Midwest assessment fell by $18.25/short ton (st) to $737.50/st, while the southern assessment dropped by $15.75/st to $740/st.

HRC lead times in the Midwest were flat at 3-4 weeks.

Most offers were reported between $700-760/st, with sales reported at $780/st.

The market continues to wait on results of negotiations between integrated steelmaker US Steel and the USW for a new contract to replace the one that expired on 1 September. Many cite a potential strike as the only action that could turn around the market, save increased production cuts by steelmakers.

US Steel has already take offline two blast furnaces in response to market conditions. No other steelmaker has followed suit.

The Argus HRC import assessment into Houston was flat at $685/st ddp on no import offers.

The spread between #1 busheling scrap delivered US Midwest mills and HRC rose by 2.1pc to $424/st.

A year ago the spread was $1,439/st as HRC prices were hovering near record-high levels.

The Argus weekly domestic US cold-rolled coil (CRC) assessment edged up by $7.50/st to $1,007.50/st, while the hot dipped galvanized (HDG) coil assessment dropped by $34.50/st to $988/st.

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

The CME HRC Midwest futures market was mostly flat in the last week, with the futures prices tightening to through December. December prices edged up by $6/st to $726/st, while January prices increased by $9/st to $740/st. February prices inched down by $2/st to $740/st, and March prices moved up by $5/st to $755/st. April prices were basically flat, up by a dollar to $765/st, while May prices are at $775/st.

Plate

The Argus weekly domestic US ex-works plate assessment was flat at $1,620/st.

Lead times were flat at 4 weeks.

The plate delivered assessment edged down by $5/st to $1,660/st.