US HRC: Prices resume slide on short lead times

  • Wednesday, July 29, 2020

  • Keywords:US HRC Prices short lead times
[Fellow]HRC import prices into Houston were flat at $460/st ddp.

[Ferro-Alloys.comDomestic hot-rolled coil (HRC) prices resumed their decline, falling on short lead times at electric arc furnace (EAF) minimills and downward expectations for US scrap prices.

The domestic US HRC assessment fell by $8.50/short ton (st) to $455/st. Lead times were flat at 2-3 weeks.
Minimills like Nucor and Steel Dynamics (SDI) were said to continue to have short lead times, with some buyers referring to the mills as "desperate" for tons.
Some market participants said mills have quietly implemented price increases, but with short lead times many service centers stayed away and continued to work down already-low inventories.
Last week Nucor announced it was fast tracking investment in its 1.4mn st/yr expansion at its Gallatin mill, and is doing the same with its new 1.2mn st/yr plate mill in Brandenburg, Kentucky. Both projects had been slowed early in the second quarter as the company evaluated the impacts of Covid-19.
The domestic US cold-rolled coil (CRC) assessment was flat at $640/st, while the hot-dipped galvanized (HDG) coil assessment was also unchanged at $635/st. Lead times for both products were flat at 5-7 weeks.
Despite weaker HRC prices, the outlook for the US domestic ferrous scrap market for August has firmed, potentially squeezing mill margins. A stronger ferrous scrap export market on the east coast to Turkey may help strengthen prices for obsolete grades, but pricing for #1 busheling is expected to fall by at least $10/gross ton (gt). Prices for busheling delivered Midwest, which traded for $280/gt in July, remain $60/gt higher than their three-year low of $220/gt recorded in October.
The spread between #1 busheling scrap delivered US Midwest mills and HRC selling prices narrowed to $205/st, down by 4pc compared to the prior week. Year-over-year, the spread is 39pc lower than the $338/st recorded a year ago.
HRC import prices into Houston were flat at $460/st ddp.
Futures prices in the CME HRC futures market rose in the last week. September futures prices fell by $6/st to $508/st, while October HRC futures declined by $3/st to $515/st. November futures slipped by $2/st to $519/st, while December prices edged down by $1/st to $521/st. January HRC futures prices were flat at $528/st, while February prices remained flat at $531/st.
Source: Argusmedia

  • [Editor:kangmingfei]

Tell Us What You Think

please login!   login   register
  • Buy & Sell

Please be logged in to comment!