US hot-rolled coil (HRC) prices broke through the $900/short ton (st) mark this week, falling to levels not seen since early December 2020.
The Argus weekly domestic US HRC Midwest assessment dropped by $44.50/st to $895.50/st, while the southern assessment dropped by $95.50/st, also to $895.50/st.
The Midwest assessment was last in similar territory in early-December 2020, when prices were rising out of Covid-19 pandemic induced lows in mid-2020.
The HRC Midwest price has fallen by 40pc since hitting a peak of $1,500/st in the first half of April.
HRC lead times in the Midwest were flat at 3-4 weeks, with buyers keeping their spot purchases to a minimum, and even some beginning to reduce below their contract minimums.
Midwest offers were heard in a wide range between $840-960/st, with most around the $900/st level.
Demand continues to remain steady though concerns are growing that demand may begin to fall off later in the year.
The Argus HRC import assessment into Houston was flat at $900/st ddp.
Sources believe that falling raw materials costs will put further downward pressure on finished steel prices. Several prime scrap markets have settled down $150/gross ton (gt) in the July trade, which is still ongoing.
The spread between #1 busheling scrap delivered US Midwest mills and HRC selling prices moved up by 4.4pc to $400/st as scrap price drops outpaced declines in steel prices. A year ago the spread was $1,229/st, weeks from hitting the peak spread of $1,441/st reached in mid-September.
The Argus weekly domestic US cold-rolled coil (CRC) assessment plunged by $127.25/st to $1,315/st, while the hot dipped galvanized (HDG) coil assessment fell by $87.50/st to $1,312.50/st. Some sources noted that the price of coating extras had been lowered by some mills as raw material prices declined.
Lead times for CRC widened to 4-6 weeks from 5 weeks while HDG lead times rose to 4-6 weeks from 4-5 weeks.
The CME HRC Midwest futures market were all down in the last week. September futures fell by $35/st to $835/st, while October prices were down by $25/st to $850/st. November prices fell by $21/st to $881/st, while December price dropped by $33/st to $860/st. January prices declined by $10/st to $881/st. February futures prices are also at $881/st.
Plate
The Argus weekly domestic US ex-works plate assessment fell by $7/st to $1,845/st, as electric arc furnace (EAF) steelmakers Nucor and SSAB were said to keep their plate prices flat at $1,860/st last week while other competitors were as low as $1,800/st.
The plate delivered assessment rose by $36/st to $1,921/st. Lead times shrank to 4-6 weeks from 3-9 weeks as most platemakers were said to have at least August availability.
