US HRC: Prices flat as market pauses

US hot-rolled coil (HRC) prices were unchanged this week amid thin spot activity at higher offers. Buyers continued to digest larger tons purchased last month as the market reached its floor.

The Argus US HRC Midwest and southern assessments were flat at $700/short ton (st) ex-works from the prior week and remained up $40/st from their September lows.

Mills continued to push for offers as high as $750/st during the week, but spot activity was limited. One deal was heard as low as $630/st for 1,500st from a buyer but the price appeared to be an outlier as the bulk of repeatable offers were at a minimum of $700/st.

A mill source indicated their average selling price was around $720/st over the past week for deals within the Argus' methodology of 100-1,000st spot deals.

Overall, buyers remained on the sidelines after there were larger-tonnage deals concluded at lower prices. Others who did not place the larger spot tons still preferred to increase their contract tons with the mills as the monthly lag and discounted prices were proving more advantageous in a stable to rising spot market.

Lower spot activity resulted in the average mill lead time for HRC slipping to 6.8 weeks from 7.2 weeks with most still deliveries still in the mid- to late-November timeframe.

Market participants were still watching the strike by the United Auto Workers (UAW) union against the Big 3 auto companies Ford, General Motors (GM) and Stellantis. So far the strike has hit six assembly plants, though the union decided to pause striking more facilities on Friday, citing progress made specifically with GM.

Five assembly plants that build midsize pickup trucks, SUVS and sedans are being struck, with a sixth idled because of a lack of parts. An additional 36 parts distribution centers are being struck across GM and Stellantis.

The Argus HRC import assessment also remained unchanged from last week at $680/st ddp Houston. The Asian markets returned from holiday but US buyers remained hesitant to entertain foreign offers given the limited discount to domestic spot prices with shorter delivery times.

Plate

The Argus US plate assessment fell by $40/st to $1,430/st ex-works on lower mill offers. The decline comes despite Nucor attempting to hold ex-works prices at $1,530/st.

Demand is said to be slowing and is not expected to change through the end of the year. Buyers also complain about mills cutting deals with end users and fabricators directly, undercutting service center prices.

Lead times fell to 4.5 weeks from 5.5 weeks as November tons remained available and demand is slow.

Delivered plate pricing dropped by $60/st to $1,450/st.