US HRC: Prices rise, market skeptical

US domestic hot rolled coil (HRC) spot prices increased as mills continue to try to push prices up.

The Argus weekly domestic US HRC Midwest assessment rose by $50/short ton (st) to $1,200/st, while the southern assessment rose by $29/st to $1,179/st.

One service center reported buying a few hundred tons of HRC in the Midwest at $1,200/st.

The HRC Midwest assessment has risen by 90pc since late-November, when it bottomed out around $630/st.

Integrated steelmaker Cleveland-Cliffs raised its flat steel prices by $100/st Monday morning, bringing its minimum HRC price to $1,300/st.

The market reacted tepidly to the announcement, which came three weeks after the last published price increase in the market. Sources reported that it was a step too far and spot inquiries have been drying up as the market works to figure out if a peak has been reached. Contract volumes remain relatively steady.

HRC Midwest lead times in the Midwest fell to 8-9 weeks from 8-10 weeks, with some mills said to be booking late-May and the rest into early June.

Contract discounts of 5-9pc to the current Argus Midwest HRC assessment would be the equivalent of $60-108/st.

The spread between #1 busheling scrap delivered US Midwest mills and HRC was up by 7.6pc to $709/st and was 16pc lower than a year ago, when US HRC prices were reaching their peak in March and April.

The Argus HRC import assessment into Houston fell by $13/st to $987/st.

The Argus weekly domestic US cold rolled coil (CRC) rose by $35.20/st to $1,385.20/st, while the hot dipped galvanized (HDG) coil assessment rose by $11.39/st to $1,361.39/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 were from $1,315-1,450/st, with most in the $1,360-1,400 range, while HDG was in a wider $1,260-1,450 range, with most in a similar $1,360-1,400 band.

Lead times for CRC and HDG were both down to 8-9 weeks from 9-10 weeks.

The CME HRC Midwest futures market was down in the last week, with the market falling fully into backwardation. May prices dropped by $49/st to $1,105/st, while June futures prices fell by $39/st to $1,006/st. July prices edged down $10/st to $935/st, while August futures were down by $2/st to $900/st. September prices dropped by $16/st to $880/st, while October prices were down by $1/st to $864/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 slipped to 9-10 weeks from 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.