[Ferro-Alloys.com] US hot-rolled coil (HRC) prices were unchanged last week as no transactions were heard and offers stayed at elevated levels, ending a 23-week streak of increasing prices.

 

The Argus weekly domestic US HRC index was flat at $1,200/st ex-works Midwest last week. Lead times fell to 7-8 weeks from 8-9 weeks.

 

The US HRC price is up from a low of $450/st recording on 11 August, a 167pc increase in a little more than five months.

 

While spot tonnage is still hard to find, most market sources indicated that there is some availability in March at certain mills. Some service centers are supplying customers solely through contracts, avoiding the spot market entirely. One service center said they have put away their order book, having booked enough tons in past months to last them through May.

 

With prices at historic levels, many distributors are nervous about booking tons and being stuck with high-priced steel coming through their doors if the price drops.

 

Integrated steelmaker Cleveland-Cliffs announced it would be idling its Middletown Works blast furnace for maintenance, and would bring up its No. 6 blast furnace at its Cleveland Works to cover for the lost tonnage. While the company said it is not aiming to increase overall production, it would not say what its plan would be for the No. 6 blast furnace in Cleveland when Middletown comes back online.

 

On raw material costs, ferrous scrap prices have come under increasing pressure following a sell-off in the active Turkish import market. Benchmark prices for HMS 1/2 80:20 scrap have fallen by $69/t from an early January peak to $413/t cfr Turkey. That drop is expected to bring down US domestic scrap prices in February, particularly obsolete grades, but prime grade scrap appears to face less downward pressure.

 

The spread between #1 busheling scrap delivered US Midwest mills and HRC selling prices was flat at $760.27/st. The spread was more than double the $347.91/st recorded a year ago.

 

The domestic US cold-rolled coil (CRC) and the hot-dipped galvanized (HDG) coil assessments were both flat at $1,350/st ex-works. Lead times for CRC fell to 8-9 weeks from 8-10 weeks, while HDG lead times fell to eight weeks from 8-10 weeks.

 

HRC import prices into Houston were flat at $1,010/st ddp.

 

The CME HRC futures market continued to trend mostly downward, aside from in March, where prices rose by $45/st to $1,080/st. April prices slipped by $3/st to $990/st, while May futures prices fell by $23/st to $890/st. June prices dropped by $68/st to $832/st, while July prices declined by $62/st to $778/st.

 

Plate

The Argus weekly domestic US plate assessment rose by $70/st to $1,050/st in higher offers from mills, while lead times rose to 7-9 weeks from 6-7 weeks.

 

Source: Argusmedia