US HRC: Prices flat, new increase announced

US hot rolled coil (HRC) spot prices were mostly flat this week after mills received most of their first price increase and at least one has started to try to push a second price increase.

The Argus weekly domestic US HRC Midwest assessment edged down by $2.75/st to $678.50/st, while the southern assessment slipped by $2/st to $678.50/st.

The prices maintained most of their increase in the prior week, when steel mills pushed prices up by $60/st and firmly set prices higher.

HRC lead times in the Midwest were flat at 4-5 weeks.

Steel mills were broadly offering HRC at $680-700/st, but offers were reported as low as $630/st.

Market participants noted that steel mills were holding the line on their offers, with no low prices reported.

Today integrated steelmaker Cleveland-Cliffs announced a $50/st flat-rolled price increase and set a minimum HRC price level of $750/st. The company announced on 28 November a $60/st flat-rolled price increase, but hadn't set a minimum price then.

Pricing during the US scrap trade for December rose by $30/gross ton (gt) on #1 busheling and $20/gt on shred grades.

The Argus HRC import assessment into Houston was flat at $680/st ddp on no trades.

The spread between #1 busheling scrap delivered US Midwest mills and HRC fell by 7.5pc to $365/st, reflecting the increase in scrap prices.

A year ago the spread was $1,206/st as HRC prices were falling from record-high levels.

The Argus weekly domestic US cold-rolled coil (CRC) assessment increased by $11/st to $877/st, while the hot dipped galvanized (HDG) coil assessment rose by $11/st to $878.75/st.

Lead times for CRC and HDG both increased to 6 weeks from 5-6 weeks.

The CME HRC Midwest futures market rose in the last week, with the futures prices remaining in contango. January prices rose by $19/st to $740/st, while February prices moved up by $10/st to $751/st. March prices jumped by $17/st to $765/st, while April prices increased by $28/st to $774/st. May prices rose by $10/st to $775/st, and June prices increased by $5/st to $772/st.

Plate

The Argus weekly domestic US ex-works plate assessment fell by $13/st to $1,461.25/st as the market continued to digest Nucor's $140/st price decrease from two weeks ago.

Lead times fell to 4-6 weeks from 4-7 weeks.

The plate delivered assessment dropped by $155/st to $1,495/st.