US hot rolled coil (HRC) spot prices rose for the second consecutive week as steelmakers continued to increase offer prices.
The Argus weekly domestic US HRC Midwest assessment increased by $22.50/st to $750/st, while the southern assessment rose by $20.50/st to $750/st.
The higher prices reflect greater acceptance of electric arc furnace (EAF) steelmaker Nucor's $50/st price increase announcement made on 9 January that added on to previous announcements by other regional steelmakers in December.
Integrated steelmaking competitor Cleveland-Cliffs increased its flat-rolled prices by $50/st early Tuesday, pushing its minimum HRC spot price to $800/st. Market participants were not surprised by the move, with several predicting on Monday that a price announcement would be made this week.
HRC lead times in the Midwest rose to 4-6 weeks from 4-5 weeks, reflecting some increases in demand. Many service centers reported that demand continued to remain steady, and some said they are getting more inquiries than actual bookings. with downstream customers remaining cautious.
Some buyers expect that, if achieved, $800/st will be the high water mark of HRC pricing this year. The market is now waiting to see what Nucor will do.
The company's last price announcement was nearly four weeks after Cliffs' December publication, with buyers reporting that the delay was partly due to the January scrap trade. Prime scrap rose by $50-60/gross ton this month.
Service centers continue to tightly manage their inventories, working to not build up large stocks as the trajectory of the US economy remains uncertain after the first quarter.
The spread between #1 busheling scrap delivered US Midwest mills and HRC fell by 8.8pc to $377/st from the prior week.
A year ago the spread was $983/st as HRC prices were continuing to plunge from record-high levels in late-2021.
The Argus HRC import assessment into Houston was flat at $690/st ddp.
The Argus weekly domestic US cold-rolled coil (CRC) assessment increased by $13.50/st to $957.50/st, while the hot dipped galvanized (HDG) coil assessment rose by $24.50/st to $960.25/st.
Lead times for CRC rose to 6-7 weeks from 5-6 weeks while HDG lead times increased to seven weeks from six weeks.
The CME HRC Midwest futures market was mixed in the last week, remaining in contango. March prices fell by $7/st to $793/st, while April prices edged up by $1/st to $811/st. May and June prices were both flat at $815/st. July prices rose by $10/st to $825/st, while the August futures price is at $825/st.
Plate
The Argus weekly domestic US ex-works plate assessment edged up by $7.50/st to $1,464/st.
Lead times slipped to 4-5 weeks from five weeks.
The plate delivered assessment moved down by $5/st to $1,506/st.
