US HRC: Prices flat as mills hold the line

Market: Metals
28/09/21

US hot-rolled coil (HRC) prices were flat over the last week as mills managed to hold pricing steady amid low levels of spot activity.

The Argus weekly domestic US HRC Midwest and south assessments were both flat at $1,960/short ton (st) ex-works. Lead times in the Midwest widened to 5-8 weeks from 6-7 weeks.

Mills have managed to keep prices elevated amid slower activity in the US steel spot market. Some market participants hope that mill outages, both ongoing and upcoming, will help offset lost consumption from the North American automotive industry.

Stellantis and Ford both announced additional closures in the last week, including to full-size pickup trucks and SUVs.

HRC import prices into Houston increased by $50/st to $1,550/st ddp on offers from Russia, Turkey and Vietnam.

The spread between #1 busheling scrap delivered US Midwest mills and HRC selling prices was flat at $1,431/st. The spread is over four times as wide as the $341/st from a year ago.

The Argus weekly domestic US cold-rolled coil (CRC) assessment rose by $40/st to $2,200/st while the hot-dipped galvanized (HDG) assessment fell by $30/st to $2,200/st.

Lead times for CRC were lower at 6-10 weeks from 8-10 weeks while HDG lead time expanded to 9-13 weeks from 7-11 weeks.

The CME HRC Midwest futures market fell across the board, albeit at lower rates than the prior week, with the market remaining in severe backwardation through the next five months. Futures pricing slipped by $5/st to $1,705/st for November, and fell by $46/st to $1,514/st for December. The January futures price dropped by $55/st to $1,409/st, with February pricing edged down by $1/st to $1,420/st.

Plate

The Argus weekly domestic US plate assessment jumped by $70/st to $1,810/st delivered as multiple steelmakers increased base pricing. Lead times slipped to 6-8 weeks from 7-8 weeks.

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27/11/24

US import tariffs would lift steel, scrap costs

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