Prices rise, market uncertain.

S hot-rolled coil (HRC) prices increased slightly this week as the market remained uncertain of direction amid continued subdued demand.

The Argus weekly domestic US HRC Midwest assessment increased by $20/short ton (st) to $800/st, while the southern assessment edged up by $2.25/st to $800/st.

HRC lead times in the Midwest moved up to 4-5 weeks from 3-5 weeks.

Most mills were said to be holding at $800/st, though some reported offers below that level.

Few transactions were reported with one mill reporting it had sold at or above the $800/st mark. Service centers still reported to be holding off on stocking purchases, with any additional tons they require being bought only to meet need.

Some have begun contract negotiations for 2023, with at least one source reporting a price discount for value-add tons of 4pc. Last year, when negotiating 2022 contracts, steelmakers reduced many contract purchaser’s discounts to lower levels, with some buyers reportedly getting no discounts.

Negotiations continued between the United Steelworkers (USW) union and integrated steelmaker US Steel, with both sides having indefinitely extended their contract which expired 1 September.

If either side decides to walk away from the negotiating table, a 48 hour notice would have to be given.

The Argus HRC import assessment into Houston was flat at $820/st ddp.

The spread between #1 busheling scrap delivered US Midwest mills and HRC selling prices increased by 4.8pc to $439/st.

A year ago the spread was $1,409/st and was one week from hitting the peak spread of $1,441/st.

The Argus weekly domestic US cold-rolled coil (CRC) assessment increased by $13.25/st to $1,080/st, while the hot dipped galvanized (HDG) coil assessment was flat at $1,065/st.

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

The CME HRC Midwest futures market was up across the board in the last week, with prices remaining in contango for an eighth consecutive week. The spread with current spot prices increased after weeks of narrowing. October futures prices rose by $35/st to $825/st, while November prices increased by $34/st to $839/st. December prices were up by $32/st to $842/st, while January prices rose by $30/st to $845/st. February futures increased by $26/st to $858/st, and March prices were up by $21/st to $856/st.


Post time: Sep-16-2022