US HRC: Prices slip, market grasps for bottom

Spanish Market: Metals
09/08/22

US hot-rolled coil (HRC) prices continued to fall this week as the market attempts to find a bottom and a major steelmaker works to prop it up.

The Argus weekly domestic US HRC Midwest and southern assessments fell by $9.50/st to $812.25/st. Since mid-April, when HRC prices peaked at $1,500/st, the assessments have fallen by 46pc and are down by 49pc since the beginning of the year.

HRC lead times in the Midwest were flat at 3-4 weeks, with August availability still reported.

At least one flat-rolled mill was reported to have pushed its lead times out into late-September after electric arc furnace (EAF) steelmaker Nucor announced a $50/st flat-rolled price increase yesterday.

The price increase caught some off guard, coming on the back of prime scrap prices dropping by $60-70/gross ton in August, which is higher than the $30-50/gt drop that the scrap market had previously expected for the month.

Declining raw material costs cast doubt upon the price increase, with multiple large service centers saying they are staying out of the spot market except to meet customer needs.

Some downstream customers were said to have moved back into the market, but many decided to hold off an continue to work down inventories.

At least one buyer made a purchase of more than 50,000st of HRC at $700/st, saying that more purchases had to be made of similar tonnages in order to push the market up. The market participant noted that prices are likely to continue to fall somewhat.

EAF steelmaker Steel Dynamics (SDI) was said to be in wait-and-see mode when it came to pricing moves, and no other steelmakers had yet to follow Nucor's lead.

The Argus HRC import assessment into Houston was flat at $820/st ddp on no new trades or offers.

The spread between #1 busheling scrap delivered US Midwest mills and HRC selling prices rose by 2.3pc to $408/st.

A year ago the spread was $1,306/st and was weeks from hitting the peak spread of $1,441/st reached in mid-September.

The Argus weekly domestic US cold-rolled coil (CRC) assessment was flat at $1,136/st, while the hot dipped galvanized (HDG) coil assessment fell by $40.75/st to $1,113.25/st. Value-add prices were heard at sub-$1,000/st levels from one source, with most in a wide range between $1,020-1,200/st.

Lead times for CRC rose slightly to 6 weeks from 5-6 weeks while HDG lead times edged down to 4-5 weeks from 4-6 weeks.

The CME HRC Midwest futures market were mixed this week, with prices remaining in contango for the third consecutive week. September futures fell by $21/st to $833/st, while October prices fell by $10/st to $860/st. November prices were flat at $880/st, while December prices were up by $25/st to $900/st. January prices edged up by $5/st to $905/st, and February futures inched up $3 to $906/st.

Plate

The Argus weekly domestic US ex-works plate assessment was flat at $1,740/st as platemakers held prices after a reduction last week. Lead times shrank to 3-5 weeks from 3-6 weeks.

The plate delivered assessment declined by $6.75/st to $1,791.25/st.

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

07/04/25

Flooding on US rivers mires barge transit

Houston, 7 April (Argus) — Barge transit slowed across the Arkansas, Ohio and lower Mississippi rivers over the weekend because of flooding, which prompted the US Army Corps of Engineers (Corps) to close locks and issue transit restrictions along the waterways. The Corps advised all small craft to limit or halt transit on the McClellan-Kerr Arkansas River Navigation System (MCKARNS) in Arkansas because flows reached above 200,000 cubic feet per second (cfs), nearly three times the high-water flow. The heavy flow is expected to persist throughout the week, posing risks to those transiting the river system, said the Corps. Some barges have halted movement on the river, temporarily miring fertilizer resupply efforts in Arkansas and Oklahoma in the middle of the urea application season. The Corps forecasts high flows to continue into Friday, and the National Weather Service predicts several locations along the MCKARNS will maintain a moderate to minor flood stage into Friday as well. Both the Arthur V Ormond Lock and the Toad Suck Ferry Lock, upriver from Little Rock, Arkansas, shut on 6 April because of the high flows. Flows along the Little Rock Corps district reached 271,600cfs on 7 April. The Corps forecasts high flows to continue into Friday. Ohio and lower Mississippi rivers The Corps restricted barge transit between Cincinnati, Ohio, and Cairo, Illinois, on the Ohio River to mitigate barge transportation risks, with the Corps closing two locks on the Ohio River on 6 April and potentially four more in the coming days. Major barge carrier American Commercial Barge Line (ACBL) anticipates dock and fleeting operations will be suspended at certain locations along the Mississippi and Ohio rivers as a result of the flooding. NWS forecasters anticipate major flooding levels to persist through the following week. Barge carriers also expect a backlog of up to two weeks in the region. To alleviate flooding at Cairo, Illinois, where the Ohio and Mississippi Rivers meet, the Corps increased water releases at the Barkley Dam on the Cumberland River and the Kentucky Dam on the Tennessee River. The Markland Lock, downriver from Cincinnati, Ohio, and the Newburgh lock near Owensboro, Kentucky, closed on 6 April. The Corps expects the full closure to remain until each location reaches its crest of nearly 57ft, which could occur on 8 or 9 April, according to the National Weather Service (NWS). Around 50 vessels or more are waiting to transit each lock, according to the Lock Status Report published by the Corps on 7 April. The Corps also shut a chamber at both Cannelton and McAlpine locks. The John T Myers and Smithland locks may close on 7 April as well, the Corps said. The Olmsted Lock, the final lock before the Ohio and Mississippi rivers, will require a 3mph limit for any traffic passing through. The NWS expects roughly 10-15 inches of precipitation fell along the Ohio and Mississippi River valleys earlier this month, inducing severe flooding across the Ohio and Mississippi River valleys. A preliminary estimate from AccuWeather stated an estimated loss of $80-90bn in damages from the extreme flooding. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

UK rows back ZEV mandate for hybrids

07/04/25

UK rows back ZEV mandate for hybrids

London, 7 April (Argus) — The UK government has pushed back its zero emission vehicle (ZEV) mandate for hybrid electric vehicles (HEVs) to 2035 from 2030, and has committed to support carmakers following the imposition of trade barriers by the US last week. The original ZEV cut-off point of 2030, one of Europe's most ambitious, will still apply to sales of cars powered by gasoline and diesel, but will be extended to 2035 for HEVs. The government will now also let carmakers continue using low-emission non-ZEVs to earn credits toward their ZEV sales targets until 2029, instead of ending this arrangement in 2026. This means they can offset some of their current ZEV requirements with cleaner non-ZEV sales, effectively pushing part of their ZEV sales obligations past the original mandate deadlines. Transport secretary Heidi Alexander said the changes were made "in the face of global economic challenges". The Society of Motor Manufacturers and Traders (SMMT) welcomed the changes, saying the government had "rightly listened to industry" and responded quickly to the change in global dynamics. Over the weekend, Jaguar Land-Rover paused exports to the US while it digested the impact of President Donald Trump's tariffs. "Given the potentially severe headwinds facing manufacturers following the introduction of US tariffs, greater action will almost certainly be needed to safeguard our industry's competitiveness. UK-US negotiations must continue at pace," SMMT chief executive Mike Hawes said. Competition concerns Other industry groups said delaying the mandate could lead to a loss of competitiveness in the long term transition to EVs. "Its dilution is in stark contrast to the accelerating ambition of the Chinese and others. UK-based automakers need to fully embrace battery electric or be significantly diminished in time, running the risk of continued job losses," said Dan Caesar, chief executive of Electric Vehicles UK, an industry association based in London. Some were more resigned, recognising the need to allow room for carmakers to transition and consumers to gain access to low priced vehicles — especially at a time of elevated trade tensions. "We understand the pressure British car makers face and welcome the government's declaration of support," said Quentin Wilson, founder of EV advocacy group FairCharge. "While we don't agree that hybrids mainly powered by a combustion engine should be included in the ZEV mandate until 2035, we do understand the reasons why, along with increased flexibilities until 2029." By Thomas Kavanagh UK car registrations by fuel Fuel type Feb-25 Feb-24 % Change % Market share 2025 % Market share 2024 BEV 21,244 14,991 41.7 25 17.7 Plug-in hybrid vehicles 7,273 6,098 19.3 9 7.2 Hybrid EVs 11,431 10,591 7.9 14 12.5 Petrol 39,865 48,211 -17.3 47 56.8 Diesel 4,241 4,995 -15.1 5 5.9 Total 84,054 84,886 -1.0 — SMMT UK BEV monthly market shares, govt targets % Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Sigma Lithium hits 1Q production, sales goals

07/04/25

Sigma Lithium hits 1Q production, sales goals

Sao Paulo, 7 April (Argus) — Sigma Lithium hit its first quarter lithium concentrate production and sales targets in Brazil after a sizeable deal with a UAE-owned company. Sigma produced 68,300 metric tonnes (t) of lithium oxide concentrate in the first quarter, after agreeing to sell 76,000t to International Resources Holding (IRH), a metals and critical minerals trading company owned by the Royal Group of Abu Dhabi, the firm said in a press release. Sigma shipped 47,000t — its first of two batches to the company — in early March, with a following 29,000t scheduled to be shipped this week. Following the sale, the company achieved a 2.8pc increase in volumes over the previous quarter. Although undisclosed, Sigma's chief executive Ana Cabral said that the company beat its sales targets for the period. The company operates the fifth-largest lithium oxide mining complex in the world, which is expected to produce 300,000t of the mineral compound this year . Sigma anticipates to achieve all of its quarterly production targets for 2025. By Pedro Consoli Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Asian governments hold fire on tariff retaliation

07/04/25

Asian governments hold fire on tariff retaliation

Singapore, 7 April (Argus) — Governments in Asia-Pacific have so far not followed China's lead by retaliating against US president Donald Trump's import tariffs, even as they warn of the potential for long-term economic disruption. The leaders of Vietnam, Malaysia, Indonesia, Taiwan and Singapore said over the weekend that they are not planning to respond in kind to the US tariffs. The restrained reactions came despite China's decision to match Trump's targeted tariffs with duties of 34pc on all imports from the US. China's tariffs, announced late last week, take effect on 10 April, a day after what Trump is calling his "reciprocal" duties on a range of countries. Countries in Asia-Pacific have been hit with some of the highest of Trump's targeted duties. Vietnam, which is facing one of the highest targeted tariff rates of any country at 46pc, is considering removing all its own tariffs on US imports, Trump said following a call with To Lam, general secretary of Vietnam's communist party, on 4 April. The offer has not been officially confirmed by Hanoi. Vietnam benefitted from the tariffs that Trump imposed on China during his first term in office, as some manufacturing and exports were shifted to the country. That helped send its trade surplus with the US to a record $123bn last year, the third-highest of any single country behind China and Mexico, according to US customs data. Malaysia, which faces a 24pc tariff, will not levy retaliatory duties, prime minister Anwar Ibrahim said on 6 April. The US duties are a major threat to the world economy and could force Kuala Lumpur to reduce its forecast for gross domestic product (GDP) growth this year, he warned. The direct impact of the US tariffs on commodity exporters like Malaysia and its neighbour Indonesia has been reduced by the extensive exemptions announced for energy, metals and other commodities. Still, the prospect of a global economic slowdown and disruption to trade flows threatens to have a major impact. Despite their measured approach, governments of emerging Asian economies may struggle to quickly negotiate lower tariffs given Trump's focus on reducing bilateral trade deficits, analysts at UK bank Barclays said on 7 April. The bank has reduced its 2025 forecast for GDP growth in emerging Asia by 0.2 percentage points to 3.3pc and warned of the risk of deeper cuts. Australia eyes price hit The government of Australia, another large commodity exporter, warned on 7 April that the uncertainty caused by Trump's tariffs could reduce consumer confidence and potentially damage the budget by causing a decline in commodity prices. Trump's so-called "liberation day" tariffs are more significant than expected when it released its budget in March, the Australian Treasury said in its economic and fiscal outlook released ahead of federal elections next month. The direct impact of the tariffs on Australia would be limited, but indirect effects would be larger because of the hit imposed on the country's major trading partners, including China, it said. "The potential magnitude and persistence of the economic effects of these announcements has resulted in greater-than-usual uncertainty around the outlook," the Treasury said. Trump has targeted Australia with the minimum 10pc tariff, but this could still disrupt its exports of beef and tallow, among other products. Australian prime minister Anthony Albanese has also pledged not to retaliate with tariffs on US imports. Japan and South Korea, long-standing allies which nevertheless have been singled out for higher US tariff rates of 24pc and 25pc respectively, have also indicated they will not respond in kind. The US accounted for almost 19pc of South Korea's total exports in 2024, including passenger cars, auto parts and lithium-ion batteries. Seoul is considering measures to support its automobile industry in the wake of the tariffs, the trade and industry ministry said. India, which faces a 26pc rate, is considering lowering import tariffs on US goods, including a 2.75pc duty on LNG, to ease tensions. By Kevin Foster, Tom Major and Joseph Ho Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump shakes global trade order, exempts energy

07/04/25

Trump shakes global trade order, exempts energy

Washington, 7 April (Argus) — The US energy industry may feel relieved after President Donald Trump spared oil and other energy commodities from the punitive taxes he announced on nearly all US trading partners on 2 April. But global economic fallout from a drastic protectionist measure will affect the energy industry indirectly, and countries looking for ways to retaliate against Trump's trade actions may follow China's lead in targeting the US' oil, LNG and LPG exports. Trump on 2 April imposed a minimum 10pc tax on all foreign imports from 5 April, with the tariff as high as 34pc for China and 20pc for the EU after 9 April. Trump's executive order exempts all energy commodities and many metals and critical minerals. The 2 April tariffs will not apply to steel and aluminum, cars, trucks and auto parts, as these are already subject to separate tariffs. A 25pc tariff on all imported cars and trucks came into force on 3 April, while a 25pc tax on auto parts will take effect on 3 May. Trump calls his new tariffs "reciprocal", suggesting that foreign countries —which he alleges have high tariffs on US products — will be forced to negotiate to lower their barriers to trade. But Trump and his key allies in Congress have left little doubt that the tariffs are here to stay. The projected tariff revenue, which Trump's administration claims will be as high as $600bn/yr, is a key metric as Congress is advancing a bill to extend tax cuts and other economic priorities, Senate Republican majority leader John Thune says. Consultancy Oxford Economics is likely to lower its 2025 global economic growth forecast by 0.6 percentage points in the wake of the tariffs. But the Trump administration has dismissed the negative reaction from stock markets as a short-term adjustment. "The gravy train is over for the globalist elites, who have profited on the backs of hard-working Americans, looting us of our industries and hollowing out our heartlands," government agency Small Business Administration head Kelly Loeffler says. Loeffler's pre-Trump administration credentials include senior positions at financial firms with global reach, including the Ice exchange. Negotiate or fight back? China is the biggest casualty of Trump's protectionist turn. Including tariffs Trump imposed in February-March , all US imports from China will now be subject to a 54pc tariff, with some products taxed even higher — electric vehicles face a 154pc tax. The previous bout of Trump's trade war saw some of the bilateral trade shift to other east Asian economies, especially Vietnam — but US imports from that country will now be subject to a 46pc tariff. Conflicting messages — Trump said on 3 April he could make a deal over tariffs if it is "phenomenal", even though his White House is inputting tariff revenue in planned budgetary process — have led many key US trading partners to hope that a major trade war could be averted. The EU is preparing countermeasures, including punitive taxes on US technology giants, but European officials are also weighing concessions before the 20pc tariff starts on 9 April. The UK, which is subject to a 10pc import tax, is hoping to strike an "economic prosperity deal" with Trump, prime minister Keir Starmer says. Beijing on 4 April announced a 34pc retaliatory tax on all US imports, with no exemptions, even though Chinese petrochemicals firms have no ready alternative sources for US LPG supply. Ottawa's similarly strong retaliation seems to have worked — Trump spared Canada and Mexico from additional penalties on 2 April and did not revive the tariffs, imposed briefly last month, that were set to upend a highly integrated North American energy market. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more