US HRC: Prices rise, increases slow

Market: Metals
14/03/23

US domestic hot rolled coil (HRC) spot prices rose for the sixth consecutive week as mills continued to push spot market offers higher albeit at slower rates.

The Argus weekly domestic US HRC Midwest and southern assessments both increased by $50/short ton (st) to $1,150/st.

A mill reported selling HRC between $1,100-1,150/st in the last week, while a service center reported buying at those levels. The price offer range was $1,000-1,200/st, with most in the $1,150-1,200/st range.

HRC prices are up by 83pc since late-November, when they bottomed out around $630/st.

Integrated steelmaker Cleveland-Cliffs announced a $100/st price increase yesterday, bringing its minimum HRC price to $1,200/st, in line with electric arc furnace (EAF) steelmaker and reroller NLMK USA. EAF competitor Nucor's HRC price minimum is $1,150/st.

HRC lead times in the Midwest fell to 6-8 weeks from eight weeks, with late-April reported at a handful of mills, and most mills said to be into May.

Rumors abound about where lead times are at individual mills, with some reporting at least one southern mill with lead times past July. One northern mill is reported to have limited May availability even though it has yet to open its books for orders.

One spot buyer reported going to the mills with more than 5,000st of material, and being quoted $1,100/st. The buyer did not take the deal.

Another reported going to a mill with 5,000st of requirements, and being told there was only 2,000st of availability.

Contract discounts of 5-9pc to the current Argus HRC assessment would be the equivalent of $58-104/st.

The spread between #1 busheling scrap delivered US Midwest mills and HRC rose by 7.1pc from the prior week to $750/st and is at the highest level since 17 May 2022. The spread is poised to contract once the March domestic ferrous scrap trade concludes later today, with most busheling prices up by $70-95/gross ton (gt), with Chicago and Pittsburgh both rising by $95/gt. Detroit has yet to be settled. Busheling prices have not kept pace with monthly HRC price gains.

The Argus HRC import assessment into Houston rose by $80/st to $940/st. One buyer reported purchasing HRC imports at that price out of Europe. The price ranges reported is broad between $900-1,100/st ddp, with a notable uptick in interest for foreign steel. Import lead times are reported between June and August.

The Argus weekly domestic US cold rolled coil (CRC) assessment was up by $100/st to $1,300/st, while the hot dipped galvanized (HDG) coil assessment rose by $40/st to $1,240/st.

Offer ranges for CRC and HDG were in a wide range from $1,200-1,460/st, with most between $1,250-1,350/st.

Lead times for CRC were flat at 9-10 weeks while HDG lead times were flat at 8-9 weeks.

The CME HRC Midwest futures market was mixed in the last week, with contango retreating a month through to June. April prices fell by $25/st to $1,245/st, while May prices rose by $10/st to $1,240/st. June futures prices fell by $22/st to $1,176/st, while July prices fell by $29/st to $1,070/st. August futures declined by $16/st to $1,021/st, while September prices rose by $15/st to $1,025/st.

Plate

The Argus weekly domestic US ex-works plate assessment increased by $50/st to $1,530/st, the new target price for Nucor, which increased its ex-works prices by $50/st yesterday.

Lead times were flat at 7-8 weeks May is reportedly now being booked.

The plate delivered assessment was flat at $1,600/st with a range of inputs between $1,560-1,640/st.

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