US hot-rolled steel coil prices fall to lowest level since March

  • Wednesday, November 14, 2018
  • Source:ferro-alloys.com

  • Keywords:US, hot-rolled steel coil, lowest level
[Fellow]US hot-rolled steel coil prices fall to lowest level since March

[ferro-alloys.com]US hot-rolled coil prices fell below $820/st Tuesday, hitting the lowest level since early March as buyers shed inventory and delay purchases.

The daily Platts TSI US HRC assessment fell $2 to $819.50/st, while the daily Platts TSI US cold-rolled coil rose 25 cents to $907.50/st.

HRC prices have fallen by $100.50/st since reaching a peak in July, according to the Platts TSI assessment.

The decline puts HRC prices at the lowest level since hitting $810.50/st March 6-7. Prices experienced a temporary bump in October following announced $40/st price-increase attempts by the mills, but have since fallen another $22.25.

The declines continued as service centers lowered inventories ahead of the end of the year and were yet to begin a significant restocking effort at still-elevated prices. Prior to early March, US HRC prices had only been above $800/st during two other price cycles -- in 2008-2009 and 2011.

A mill source indicated that HRC prices along the Great Lakes were hovering around $800/st, dependent on tonnage.

He said 200-300 st inquiries would likely receive offers at $800-$820/st while a 1,000 st inquiry would be $790-$800/st. More significant inquiries at 3,000-4,000 st may be able to achieve $760/st, but he noted that overall buying interest remained thin.

The market could experience another attempt at an increase following the Thanksgiving holiday, with mills hoping to extend lead times into January and firm prices ahead of the Christmas period in December, he added.

Two service center sources noted some aggressive distribution resale numbers in the Houston market around $720/st. The low prices indicated the ongoing push to shed inventory as prices were well below any potential first quarter foreign arrivals, according to one of the service center sources. Still, inventory reduction tends to be a normal occurrence in Q4, particularly in Houston where inventories face a year-end tax.

The second service center source said he was "not in the buying mood right now ... . I am heavy as business continues to soften."

The combined Platts TSI price index uses a volume-weighted average calculation -- according to TSI's standard -- to determine value on an ex-works Indiana basis.

(S&P Global Platts)

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