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Print[Ferro-Alloys.com] US hot-rolled coil (HRC) prices regained last week's slight losses as mills aimed to take advantage of limited supply to push prices up.
The Argus weekly domestic US HRC index rose by $10/st to $1,250/st ex-works Midwest this week. Lead times were flat at 6-8 weeks.
The knock-on effect from the winter storm that began on 14 February and lasted a week across much of the US has weakened steel supply in the US and Mexico. Much of the steel industry in Mexico was hampered by a lack of natural gas for operations and electricity due to disruptions related to the winter blast.
Service centers said available spot tons for April have mostly dried up, a symptom of lost production and transportation due to the winter storm.
One mill said prices of $1,300/st for HRC and $1,500/st for value-add products are now in sight due to the continued shortages.
Credit lines continue to be stretched thin, creating a point of concern for steel consumers who may put off production due to an inability to purchase steel.
The spread between #1 busheling scrap delivered US Midwest mills and HRC selling prices rose by 1.2pc to $810.27/st from $800.27/st the week before. The spread is more than double the $333/st recorded a year ago.
The domestic US cold-rolled coil (CRC) assessment increased by $25/st to $1,425/st, while the hot-dipped galvanized (HDG) coil assessment rose by $30/st to $1,425/st. Lead times for CRC expanded to 8-10 weeks from 10 weeks, while HDG lead times fell to 8-10 weeks from 9-11 weeks.
HRC import prices into Houston were flat at $1,000/st ddp. Traders noted increased interest in imported steel in the last few weeks, particularly from Egypt and Turkey.
The CME HRC futures market continued to rise in the past week, but backwardation continues to persist in the market. For April, prices increased by $40/st to $1,265/st, while May futures prices jumped by $50/st to $1,171/st.
June prices increased by $30/st to $1,070/st, while July prices rose by $31/st to $1,004/st. August futures prices rose by $18/st to $956/st.
Plate
The Argus weekly domestic US plate assessment fell by $23 to $1,142/st, while lead times increased to 6-8 weeks from 5-7 weeks. Market participants said plate imports into Houston were between $900-1,000/st ddp.
Source: Argusmedia
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