Generic Hero BannerGeneric Hero Banner
Latest Market News

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.

03/04/25

US battery costs face sharp rise on tariffs

US battery costs face sharp rise on tariffs

London, 3 April (Argus) — Battery cells imported into the US market face a sharp cost increase following the imposition of US president Donald Trump's new tariff regime. The US last year imported $23.8bn worth of battery cells, according to trade data, mostly from China, Japan and South Korea, all of which have been hit with "reciprocal" tariffs after Trump's executive order was signed on 2 April. China, by far the largest supplier of battery cells to the US market, is now subject to an effective 54pc tariffs, with the extra 34pc duty on top of 20pc blanket duties introduced by the administration of former US president Joe Biden. Battery cell imports to the US from China last year amounted to $16.45bn, 70pc of the total, up from just $2bn in 2020. The new tariffs would add $8bn to this cost for US carmakers and battery pack producers. Japan and South Korea, long-standing US allies and partners in battery cell production, face tariff rates of 24pc and 25pc, respectively. The US last year imported $1.7bn worth of battery cells from Japan and $1.3bn from South Korea. Despite the tariffs, there is potential that Japan and South Korea could eat into China's share of US imports, because of the gulf between their respective tariff rates and being the world's only real alternative producers at this point. A longer-term outcome could be that the US domesticates some of this battery cell production, a trend that was already under way, thanks to Biden's Inflation Reduction Act, which allocated federal funding to battery giga-factories and other battery-related projects throughout the US. But building battery cells is not simple. The US will need access to raw materials, some of which are heavily affected by the new tariffs. Cell-making technology, controlled by the three Asian countries, could be included in any retaliatory measures. "The Trump administration's 'Liberation Day' announcement on tariffs are the biggest trade shock in history, representing a historic shift away from the long-term trend towards free trade," chief economist at investment bank Macquarie Ric Deverell said. "The tariff increase far exceeds earlier expectations, highlighting the strong 're-industrialisation' ideology of the Trump administration." Battery materials impact mixed The impact on key materials for the battery supply chain is mixed, with some metals and pre-cursor materials exempted from the new measures, while some key materials are included. Lithium carbonate, lithium hydroxide, cobalt sulphate, cobalt metal, manganese dioxide, natural graphite powder and flakes all are exempt from new additional tariffs. Key materials that are not exempt include nickel sulphate, manganese sulphate, phosphoric acid, iron phosphate and synthetic graphite, all of which will be included in the tariff regimes implemented on individual countries. The US has no nickel sulphate production and imports most of its material from Belgium and Australia, which exported 1,872t and 1,060t to the US last year, respectively. Tariffs on Belgium will fall under the EU, which will be applied at 20pc, while Australia is subject to a tariff of 10pc. Indonesia, the world's largest nickel producer, is subject to a tariff of 32pc, although so far it has not supplied material to the US. Total US imports of nickel sulphate last year reached 3,738t, up from just 1,125t in 2020. With regard to synthetic graphite, another essential item for battery cell production, the US imported 115,778t in 2024, up substantially from 30,109t in 2020. Most of this came from China, at 74pc of the import market. This material now will be subject to 54pc tariffs, significantly increasing this cost for US battery cell producers. By Thomas Kavanagh and Chris Welch US lithium-ion battery imports by country $bn Feedstock materials exempt from 2 Apr tariffs t US manufacturing investments by stage of supply chain $bn Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

UK steel service centre Malcolm Clarke to close


03/04/25
03/04/25

UK steel service centre Malcolm Clarke to close

London, 3 April (Argus) — Manchester-based steel service centre Malcolm Clarke will close by summer this year, the company said in a letter to customers and suppliers. The company said any existing and new orders will be fulfilled in full and on time, ahead of its target closure date of June 2025. The closure may be slightly later than this date after its "orderly winding down", the company said. Suppliers will be paid before the closure, it added. Malcolm Clarke in its financial results to June 2024, published on 2 April, announced that it would cease trading, so its accounts had been prepared "on a basis other than going concern". "The business environment in which we operate has become increasingly unstable, with unpredictable shifts in market and regulation making it very challenging for small- to medium-sized participants in the day-to-day spot market," the company told Argus . "Despite our best efforts to adapt and evolve, we do not envisage a short- to medium-term future where the situation is likely to improve significantly," it added, suggesting changes to the market were structural and permanent. The business, which was incorporated in September 1970, has two heavy decoiling lines and also sells reversing mill plate. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU steps up steel import monitoring after US measures


03/04/25
03/04/25

EU steps up steel import monitoring after US measures

Brussels, 3 April (Argus) — The EU has immediately increased its surveillance of steel imports in response to additional tariffs in the US, and global overcapacity. "We want to prevent that the steel that hits [the US] tariff wall doesn't hit us here in Europe," a senior EU official said. "Under the WTO rules, the safeguard agreement, we can close our markets due to an unexpected and sudden influx of imports and where a quick reaction is needed". "We have different tools, safeguards is one of them. How exactly we will be using those tools to deal with this trade diversionist effect, that depends on what happens, that depends on the analysis," he added. Global excess steel capacity is forecast to increase to more than 720mn t by 2027, from 602mn t last year, according to the OECD — this is over five times EU steel production. Retaliatory tariffs in the US on all trade partners risk a trade diversion that could further dampen steel demand downstream as well as upstream. Finished goods diversion a challenge European service centres, distributors and processors have already struggled with an increase in imports of components and finished goods, which has undermined demand from their own customers. European steel, tube and metal distributors association Eurometal has recently been lobbying for downstream import protection. Senior figures from the association were in Brussels today, discussing the issue. "We are spreading the message to the European Commission that we need to protect the steel consumption in Europe, not only production," Tata Steel Layde managing director and former Eurometal president Fernando Espada said on LinkedIn from Brussels. EU trade commissioner Maros Sefcovic will speak on 4 April with US secretary of commerce Howard Lutnick. Officials added that the EU is a partner in finding solutions to problems from an ineffective rules-based system or "global overcapacity that comes from a large non-market economy". By Dafydd ab Iago and Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US tariff exemptions spare some commodity trade


03/04/25
03/04/25

US tariff exemptions spare some commodity trade

Singapore, 3 April (Argus) — US president Donald Trump has exempted many energy and mineral products from his new import tariffs, potentially reducing the immediate impact on commodity trade. But the threat of global economic disruption nevertheless sent commodity futures sharply lower today. The tariffs, announced by Trump on 2 April, include carve-outs for "copper… semiconductors… certain critical minerals, and energy and energy products," the White House said. The full list of exempted products includes many non-ferrous metals, oil products, base oils, coal and some fertilizer and chemical products. The 2 April tariffs will not apply to steel and aluminum, cars, trucks and auto parts, which already are 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. Oil futures fell by over 3pc early in Asian trading hours, despite the exemptions, on concerns about the impact of the new tariffs on the global economy. The June Brent contract on the Ice exchange fell by as much as 3.2pc to a low of $72.52/bl in Asian trading, while May Nymex WTI dropped by 3.4pc to $69.27/bl. Both contracts remained close to their daily lows at 3:15pm Singapore time (07:15 GMT). Exchange-traded metals prices also fell. The declines came despite a drop in the value of the dollar, which would typically support prices of commodities by making them cheaper for buyers using other currencies. By Kevin Foster Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Oil futures, stock markets fall on Trump tariffs


03/04/25
03/04/25

Oil futures, stock markets fall on Trump tariffs

Singapore, 3 April (Argus) — US president Donald Trump's announcement of sweeping new tariffs on all US imports has sparked an immediate sell-off in oil futures and stock markets. Crude oil futures fell by almost 3.5pc in Asian trading and some stock markets in the region fell by a similar amount, after Trump unveiled the new import tariffs on 2 April. All foreign imports into the US will be subject to a minimum 10pc tax, with levels as high as 34pc for China and 20pc for the EU, Trump said. But energy and some mineral products have been excluded from the new tariffs. Tariffs on Japan and South Korea, both major trading partners and long-standing US allies in Asia, have been set at 24pc and 25pc respectively. Indonesia, Vietnam, Taiwan and Thailand also face tariffs of more than 30pc. Tariffs on imports from China will be subject to a 54pc rate, after taking into account the 20pc tariffs imposed by Trump over the last two months. Some imports from China that are subject to pre-existing tariffs will face an even higher effective rate. The blanket 10pc tariffs will take effect on 5 April. Any additional country-specific rates will come into force on 9 April. Oil futures fell despite the exemption for energy products. The June Brent contract on the Ice exchange fell by as much as 3.2pc to a low of $72.52/bl in Asian trading, while May Nymex WTI dropped by 3.4pc to $69.27/bl. The prospect that the US tariffs could disrupt global trade and hit export-focused economies in Asia sent stock markets in Tokyo, Hong Kong and South Korea down by 2-3pc or more. US stock futures also fell sharply. By Kevin Foster Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

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