[Ferro-Alloys.com]US hot rolled coil (HRC) prices continued their six week decline.
The Argus weekly domestic US HRC Midwest assessment fell by $62.50/short ton (st) to $1,249.50/st, while the southern assessment fell by $59/st to $1,253/st. HRC prices have fallen by 17pc since hitting their peak of $1,500/st between 5-19 April.
HRC lead times in the Midwest increased to 3-5 weeks from 3-4 weeks, with most flat-rolled steel mills either in the last week of June or first week of July.
Offers were heard in a wide range between $1,150-1,300/st, with most in the $1,200/st range.
The Argus HRC import assessment into Houston dropped by $38.25/st to $961.75/st ddp.
Steel buyers were tightening their belts as much as possible, buying to their minimums on contracts. Some steel mills were said to be encouraging buyers to put additional tons on their contracts rather than buying as spot transactions. At least one buyer was reluctant to do so as contract prices are said to be lagging lower spot prices by a few weeks.
The spread between #1 busheling scrap delivered US Midwest mills and HRC selling prices fell by 9pc to $640/st. A year ago the spread was $1,108/st and was still months 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 $27/st to $1,686.75/st, while the hot dipped galvanized (HDG) coil assessment declined by $35.75/st to $1,686.75/st.
Price offers for CRC and HDG were said to be as low as $1,560/st, with the offer range up to $1,760/st.
Lead times for CRC slipped to 6 weeks from 7 weeks while HDG lead times fell to 6 weeks from 7-8 weeks.
The CME HRC Midwest futures market was down slightly in the last week as the market was relatively quiet around the Memorial Day holiday. July future pricing slipped by $8/st to $1,032/st, while August futures fell by $15/st to $1,010/st. September futures dropped by $20/st to $980/st, while October futures were flat at $960/st. November pricing rose by $9/st to $950/st.
TheArgus weekly domestic US ex-works plate assessment slipped by $7.50/st to $1,852.50/st.
The plate delivered assessment jumped by $58.75/st to $1,971.25/st. Lead times fell to 5-7 weeks from 6-9 weeks.
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