US hot rolled coil (HRC) prices fell this week with the Midwest and south merging as lower prices for larger tons continue to be reported.
The Argus weekly domestic US HRC Midwest assessment fell by $20/st to $820/st while the southern assessment fell by $30/st to $820/st on an ex-works basis. HRC prices are down by 32pc since the peak of $1,200/st in April.
Steelmaker Steel Dynamics (SDI) said Tuesday it has restarted the hot end at the 3mn st/yr Sinton, Texas, flat steel mill on 28 July. The mill's melt shop had idled 1 July after its caster shear went down for unplanned maintenance.
The Sinton outage seemed to have only limited impact on the market, with the south gaining a slight $10/st premium last week that evaporated this week.
Offers of $800-840/st were reported for 100-1,000st, while in the south the range extended up to $850/st.
Repeatable offers were reported between $760-840/st in the Midwest and $760-850/st in the south. The range of pricing inputs lowered overall with one Midwestern mill reporting a range as low as $640/st for large tons. Many sources believe that pricing in the lower-$700s/st is available if large tons were placed with a mill, though few want to test the waters for that amount of steel.
The weekly Argus US HRC Midwest lead time average was flat at 5-6 weeks as mill order books moved the first two weeks of September.
While lead times are extended compared to earlier in the year, most service centers see them as short enough to allow them to buy on the spot market if they need to fill an inventory hole. Most report having comfortable inventory levels, with plans to keep inventory levels flat.
The weekly Argus US HRC import price was flat at $720/st on a ddp Houston basis, with interest in imports slowing further this week as lead times from most countries extend well into the fourth quarter. Lead times are keeping most buyers away from imports to avoid inventory holding taxes at the end of the year. Offers from Mexico were reported at a premium compared to other countries at prices between $800-835/st into Houston, with steelmakers in the country arguing its closer proximity should be a factor in higher pricing.
Plate
The Argus weekly domestic US ex-works plate assessment remained flat at $1,570/st as Nucor kept prices flat in a price announcement on 31 July.
Service centers continue to complain that resale prices are below mill ex-works prices as service centers lose money on orders.
Lead times widened to 5-8 weeks from 6-7 weeks as Nucor announced it had opened its September books.
The Argus US delivered plate assessment was flat at $1,620/st.
