US hot-rolled coil (HRC) prices fell this week, despite a pair of formal price increases, as sentiment remained mostly weak.

 

The Argus weekly domestic US HRC Midwest assessment dropped by $35/short ton to $780/st, while the southern assessment fell by $17.25/st to $797.75/st. Since mid-April, when HRC prices peaked at $1,500/st, the Midwest assessment is down by 48pc while the southern assessment is down by 47pc.

 

HRC lead times in the Midwest were flat at 3-5 wks.

 

The market continued to digest last week's pair of $75/st price increases by integrated steelmaker Cleveland-Cliffs and electric arc furnace (EAF) steelmaker and reroller NLMK USA. Many buyers expressed skepticism that the price increases, like Nucor's $50/st increase weeks ago, will do more than set a floor in the market.

 

The price increase announcements without statements of a reported price in the market has led to broad confusion, with offer ranges from the low-$700s up to $900/st reported.

 

Sales were reported at $780/st, with one buyer reporting purchasing HRC at $830/st in the south.

 

Ongoing labor negotiations between the United Steelworkers (USW) and integrated steelmaker US Steel appear to be at an impasse, with the expiration of the current contract looming on 1 September. No strike action has been announced by the union, and US Steel has not indicated they would order a lockout.

 

Competitor Cleveland-Cliffs has agreed to a tentative four-year contract with its unions, which still needs to be ratified by their members.

 

EAF steelmaker Steel Dynamics' (SDI) 3mn st/yr Texas flat-rolled mill is expected to run at 50pc capacity for the next month or two, ramping up to 80pc capacity by the end of the year, the company's chief executive Mark Millett said last week at the SMU Steel Summit in Atlanta.

 

The Argus HRC import assessment into Houston was flat at $840/st ddp.

 

The spread between #1 busheling scrap delivered US Midwest mills and HRC selling prices fell by 7.7pc to $419/st.

 

A year ago the spread was $1,356/st and was three weeks from hitting the peak spread of $1,441/st reached in mid-September.

 

The Argus weekly domestic US cold-rolled coil (CRC) assessment fell by $25.75/st to $1,096.75/st, while the hot dipped galvanized (HDG) coil assessment slipped by $5.75/st to $1,088/st. It is the lowest price levels for value-added products since the end of 2020.

 

Lead times for CRC and HDG were flat at 6-7 weeks and 6 weeks, respectively.

 

The CME HRC Midwest futures market was down in the last week, with prices remaining in contango for a sixth consecutive week but their spread with current spot prices narrowing. October futures prices fell by $15/st to $815/st, while November prices dropped by $28/st to $827/st. December prices plunged by $50/st to $830/st, while January prices fell by $50/st to $850/st. February futures dropped by $34 to $866/st, and March prices fell by $29/st to $881/st.

 

Plate

The Argus weekly domestic US ex-works plate assessment was down by $10/st to $1,730/st. Lead times were flat at four weeks.

 

The plate delivered assessment fell by $20/st to $1,775/st.