[Ferro-Alloys.com] Domestic 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.