US HRC: Prices mostly flat, lower sales heard

US hot-rolled coil (HRC) prices fell slightly this week as lower priced sales of larger volumes were reported.

The Argus weekly domestic US HRC Midwest assessment inched down by $2.50/short ton (st) to $797.50/st, while the southern assessment fell by $9/st to $791/st because of lower prices from Mexico.

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

Most mills were said to be holding offers at $800/st, though multiple large purchases were reported around $700/st range by a handful of buyers, frustrating smaller service centers.

Many buyers still refuse to make purchases that would build their inventories, opting to keep stocks tight rather than take a stake in the uncertain market.

The Argus HRC import assessment into Houston fell by $90/st to $730/st ddp on lower offer levels.

The spread between #1 busheling scrap delivered US Midwest mills and HRC selling prices was flat at $438/st.

A year ago the spread was $1,441/st, the highest spread ever recorded in Argus' price history and a result of skyrocketing steel prices brought on by Covid-19 related disruptions.

The Argus weekly domestic US cold-rolled coil (CRC) assessment fell by $80/st to $1,000/st on a lower reported sale, while the hot dipped galvanized (HDG) coil assessment moved up by $6/st to $1,071/st.

Lead times for CRC increased to 6-8 weeks from 6-7 weeks, while HDG lead times moved up to 7-8 weeks from 6-7 weeks.

The CME HRC Midwest futures market was down in the last week, with the futures prices for November and December falling into backwardation for the first time in eight weeks. The spread with current spot prices further out has also narrowed. November prices fell by $43/st to $796/st, while December prices dropped by $44/st to $798/st. January prices fell by $40/st to $805/st, while February declined by $43/st to $815/st. March prices fell by $36/st to $820/st, and April prices are at $825/st.

Plate

The Argus weekly domestic US ex-works plate assessment dropped by $120/st to $1,620/st as steelmaker Nucor lowered its discrete plate prices by that level. Service centers have worried for months that more price declines would be coming as the spread between HRC and plate remains at historically high levels.

Lead times rose to 5-6 weeks from 3-5 weeks.

The plate delivered assessment fell by $130/st to $1,660/st.