US HRC: Prices rise, market skeptical

  • Tuesday, April 11, 2023
  • Source:ferro-alloys.com

  • Keywords:US HRC Prices
[Fellow]The company also raised its minimum hot rolled coil (HRC) price to $1,300/st.

 
US domestic hot rolled coil (HRC) spot prices increased as mills continue to try to push prices up.
 
The Argus weekly domestic US HRC Midwest assessment rose by $50/short ton (st) to $1,200/st, while the southern assessment rose by $29/st to $1,179/st.
 
One service center reported buying a few hundred tons of HRC in the Midwest at $1,200/st.
 
The HRC Midwest assessment has risen by 90pc since late-November, when it bottomed out around $630/st.
 
Integrated steelmaker Cleveland-Cliffs raised its flat steel prices by $100/st Monday morning, bringing its minimum HRC price to $1,300/st.
 
The market reacted tepidly to the announcement, which came three weeks after the last published price increase in the market. Sources reported that it was a step too far and spot inquiries have been drying up as the market works to figure out if a peak has been reached. Contract volumes remain relatively steady.
 
HRC Midwest lead times in the Midwest fell to 8-9 weeks from 8-10 weeks, with some mills said to be booking late-May and the rest into early June.
 
Contract discounts of 5-9pc to the current Argus Midwest HRC assessment would be the equivalent of $60-108/st.
 
The spread between #1 busheling scrap delivered US Midwest mills and HRC was up by 7.6pc to $709/st and was 16pc lower than a year ago, when US HRC prices were reaching their peak in March and April.
 
The Argus HRC import assessment into Houston fell by $13/st to $987/st.
 
The Argus weekly domestic US cold rolled coil (CRC) rose by $35.20/st to $1,385.20/st, while the hot dipped galvanized (HDG) coil assessment rose by $11.39/st to $1,361.39/st. The increases reflect the $200/st spread US steelmakers are trying to receive and the average low offer price reported in the market.
 
Offer ranges for CRC were from $1,315-1,450/st, with most in the $1,360-1,400 range, while HDG was in a wider $1,260-1,450 range, with most in a similar $1,360-1,400 band.
 
Lead times for CRC and HDG were both down to 8-9 weeks from 9-10 weeks.
 
The CME HRC Midwest futures market was down in the last week, with the market falling fully into backwardation. May prices dropped by $49/st to $1,105/st, while June futures prices fell by $39/st to $1,006/st. July prices edged down $10/st to $935/st, while August futures were down by $2/st to $900/st. September prices dropped by $16/st to $880/st, while October prices were down by $1/st to $864/st.
 
Plate
The Argus weekly domestic US ex-works plate assessment was flat at $1,535/st. The market continues to wait to see what electric arc furnace (EAF) platemaker Nucor will do next with its June pricing.
 
Lead times slipped to 9-10 weeks from 10 weeks as May is reportedly booked up and the market waits for June books to open up.
 
The plate delivered assessment was flat at $1,600/st. argusmedia

 

  • [Editor:kangmingfei]

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