US HRC: Prices remain flat

US domestic hot rolled coil (HRC) spot prices remained flat for the second week in a row as buyers took stock of their warehouse inventories and tons on order.

The Argus weekly domestic US HRC Midwest and southern assessments were flat at $1,150/short ton (st).

No spot sales or purchases were reported in the last week, with offers between $1,150-1,200/st and most at the $1,150/st mark.

HRC prices remain up by 83pc since late-November, when they bottomed out around $630/st.

The last price increase was a $100/st announcement published by integrated steelmaker Cleveland-Cliffs' on 13 March, which brought its minimum HRC price to $1,200/st.

HRC lead times in the Midwest increased to 8-10 weeks from 6-8 weeks, with mills said to be booked into late-May and early June. The longer lead times do not seem to be creating additional demand nor allowing the mills to book higher priced spot tons.

Buyers continued to review their order books as they mull their next moves, with more saying they will move to reduce their contract purchases in order to manage their inventories going into what they think will be a downward part of the price cycle.

One buyer reported that they were offered $1,100/st for at least 5,000st of HRC. Few seem interested in booking larger amounts of volumes. Another buyer reported a portion of a large order was shipping about a month earlier than expected.

There are concerns that supply will grow with the upcoming steel mill outages coming and going relatively quickly in April.

Contract discounts of 5-9pc to the current Argus HRC assessment would be the equivalent of $58-104/st.

The spread between #1 busheling scrap delivered US Midwest mills and HRC was flat at $659/st and was 17pc lower than a year ago, when US HRC prices were reaching their peak in March and April.

The Argus HRC import assessment into Houston was flat at $1,000/st, as prices remained outside of methodology for lead times. Offers were heard between $880-1,000/st ddp Houston, with most between $950-1,000/st.

The Argus weekly domestic US cold rolled coil (CRC) and hot dipped galvanized (HDG) coil assessments both increased by $50/st to $1,350/st. The increases reflect the $200/st spread US steelmakers are trying to receive and the average low offer price reported in the market.

Offer ranges for CRC and HDG narrowed to $1,340-1,400/st, with most around $1,350/st.

Lead times for CRC were flat at 9-10 weeks while HDG lead times rose to 9-10 weeks from 8-9 weeks.

The CME HRC Midwest futures market was down by double digits across the board in the last week, with contango just barely maintaining for May. May prices fell by $46/st to $1,154/st, while June futures prices dropped by $71/st to $1,045/st. July prices plunged by $90/st to $945/st, while August futures fell by $78/st to $902/st. September prices dropped by $71/st to $896/st, while October prices were at $865/st.

Plate

The Argus weekly domestic US ex-works plate assessment was flat at $1,535/st. The market continues to wait to see what electric arc furnace (EAF) platemaker Nucor will do next with its June pricing.

Lead times jumped to 10 weeks from 7-10 weeks as May is reportedly booked up and the market waits for June books to open up.

The plate delivered assessment was flat at $1,600/st.