US HRC: Prices edge up on offers

US hot rolled coil (HRC) prices edged higher over the last week on higher mill offers amid low trading activity around the 4 July holiday.

The Argus weekly domestic US HRC Midwest and southern assessments both rose by $20/short ton (st) on Wednesday to $840/st on an ex-works basis. HRC prices remain down by 30pc since the peak of $1,200/st in April.

Multiple buyers reported repeatable offers between $840-880/st for 100st to a couple hundred short tons of HRC. The market remained relatively quiet as many took a long weekend with the holiday falling on a Tuesday.

One mill reported selling between $900-950/st, the same level as other offers reported in the market. No buyer reported paying mill asking prices, which were set in mid-June.

HRC lead times remained relatively short, dissuading buyers from purchasing large amounts of steel on the spot market.

The weekly Argus US HRC lead time average edged up to 4-5 weeks from 3-4 weeks as mill order books moved into late-July to early-August.

Some service centers reported pulling back their contract buying as companies continue to manage their inventories down along with seasonal summer slowdowns. US automakers are taking many of their plants offline this week, part of previously reported planned shutdowns.

One large Midwestern buyer reported cutting contract purchases close to their minimum for the third quarter.

The weekly Argus US HRC import price rose by $60/st to $760/st on a ddp Houston basis, matching offers from South Korea for September and October.

Plate

The Argus weekly domestic US ex-works plate assessment remained flat at $1,570/st after electric arc furnace (EAF) platemaker Nucor announced last week it would keep its ex-works plate pricing flat at that level.

One plate buyer reported they are lowering their contract buying to avoid building up too much inventory.

Lead times moved down to 4-6 weeks from 5-6 weeks.

The Argus US delivered plate assessment was flat at $1,610/st.