US domestic hot rolled coil (HRC) spot prices were flat this week as buyers continued to stay out of the spot market and price ranges narrowed.
The Argus weekly domestic US HRC Midwest assessment was flat at $781.25/st, while the southern assessment rose by $3.75/st to $775/st on transactions.
It is the first time since the beginning of the year that the Midwest assessment has been flat after rising for most of the last eight weeks.
HRC price offers were in a range of $740-800/st, with most between $760-800/st.
The narrower range shows that steelmakers are holding at increased prices, which they have tried to formally raise by $160/st since the end of November.
With the spot price ranges of $760-800/st, a contract discount range of 5-9pc would be the equivalent of $38-72/st.
HRC lead times in the Midwest edged down to 4-6 weeks from 5-6 weeks, returning to where they were two weeks ago and reflecting improved supply.
Mills are booked through February and have started working on booking March HRC tons. One mill reported being nearly done with March, but appeared to be more of an anomaly than the norm.
Some service centers reiterated concerns about customers pulling forward demand to get ahead of rising prices, which could lead to a fall off in orders in the coming months.
The spread between #1 busheling scrap delivered US Midwest mills and HRC was flat at $408/st from the prior week.
A year ago the spread was $922/st as HRC prices began to plunge again after a brief pause of declines as it moved down from record-high levels in late-2021.
The Argus HRC import assessment into Houston jumped by $62.50/st to $780/st ddp on higher offers and rising global prices. The assessment reflected reported offers from Mexico. Other origins had much higher price ideas based on strength in local markets, with Vietnam and Turkish prices w referenced at $900-980/st range ddp Houston, respectively.
The Argus weekly domestic US cold-rolled coil (CRC) assessment dropped by $33.50/st to $958.75/st, while the hot dipped galvanized (HDG) coil assessment fell by $14/st to $959.25/st. Galvanized material was reported to be more available in the market, leading to a decline in lead times and the corresponding decline in prices.
Lead times for CRC increased slightly to 7-8 weeks from seven weeks while HDG lead times widened to 4-7 weeks from six weeks.
The CME HRC Midwest futures market was up in the last week, with prices remaining in contango and slightly increasing their spread. The market is expected to be flat over the next few months, with March prices rose by $21/st to $800/st, while April prices increased by $13/st to $800/st. May prices rose by $13/st to $800/st while June was up by $10/st to $800/st. July prices moved up by $9/st to $800/st, while the August futures increased by $7/st to $800/st.
Plate
The Argus weekly domestic US ex-works plate assessment increased by $6/st to $1,470/st.
Lead times were flat at 5-6 weeks. Demand was reported to be steady.
The plate delivered assessment inched down by $3/st to $1,503/st.
