US hot rolled coil (HRC) prices stayed flat this week as the market took a pause as it looks for direction.
The Argus weekly domestic US HRC Midwest and southern assessments both were flat at $870/short ton (st) on an ex-works basis. HRC prices remain down by 28pc since the peak of $1,200/st in April.
Repeatable offers were reported between $840-900/st. One mill reported selling less than 100st for an average price of $1,000/st. One service center reported offers between $840-860/st for 500st, while another reported offers of $880-900st for 150-300st.
Service center contacts reported that buying activity remained limited even a few weeks after the 4 July holiday, with many happy to buy to their minimum contract volumes and supplement any immediate customer needs with relatively short lead time spot purchases.
The weekly Argus US HRC lead time average increased to 4-6 weeks from 4-5 weeks as mill order books moved into mid- to late-August.
The market remains uncertain about what impact the unplanned shutdown of Steel Dynamics' (SDI) Sinton, Texas flat rolled mill will have on supply. Service centers who work with SDI indicated the company is working to shift what orders it can around to its other flat mills in Columbus, Mississippi and Butler, Indiana.
The weekly Argus US HRC import price fell by $40/st to $760/st on a ddp Houston basis, with repeatable offers between $740-780/st ddp. South Korea was said to be offering at $760-780/st for October and November delivery, but interest was limited. Mexico is reportedly receiving a premium for its HRC at prices between $840-860/st as lead times from that country are close to domestic US mills.
Plate
The Argus weekly domestic US ex-works plate assessment remained flat at $1,570/st, with multiple mills reportedly offering at that price.
Some service centers have complained that resale prices on a delivered basis have dipped below the $1,570/st ex-works price, with frustration growing that replacement costs are above the price they are receiving for their plate products.
Lead times slipped to 3-6 weeks from 3-7 weeks, with lead times into August.
The Argus US delivered plate assessment was flat at $1,610/st.
