US Hot-Rolled Coil Prices are Edging up Despite Falling Demand
- 14-Sep-2022 5:12 PM
- Journalist: Henry Locke
The Hot-Rolled Coil (HRC) prices in the US steel market increased slightly this week as the market remained sceptical amidst a persistently subdued demand outlook. Service centres still delay stock purchases, with additional tonnes bought only hand-to-mouth basis. Some buyers even have started contract negotiations for 2023, with at least a 4% price markdown for value-add tonnes.
Local US distributors cite that the United Steelworkers (USW) union and integrated steel manufacturers continued their contract negotiations on US Steel, with both parties consenting to unfurl their contract, which expired on September 1st. Additionally, if either United Steelworkers (USW) union or integrated steel manufacturers decide to leave the negotiating table, a 48-hours prior notice will be required. The HRC import offers into Houston remained unchanged at USD 900/MT Delivered Duty Paid (DDP). Furthermore, market players noted the price differential between scrap delivered to US Midwest mills and HRC's selling prices dilated by more than 4.5% and settled at USD 439/MT.
As per market players, the weekly domestic US Hot-Rolled Coil Midwest assessment increased by USD 22/MT to USD 879/MT, while the southern Hot-Rolled Coil prices increased by USD 2.5/MT. Most Hot-Rolled Coil buyers noted that lead times in the Midwest moved to 4-5 weeks from 3-4 weeks. Several mills were quoting Hot-Rolled Coil prices at USD 879/MT, while some manufacturers tried filling the order books and offered HRC below that level. There were a few transactions, with one mill reporting at or above USD 879/MT.
Due to the soaring Hot-Rolled Coil prices, the weekly domestic US cold-rolled coil (CRC) prices soared by more than USD 14.5/MT to USD 1186.5/MT, while the hot-dipped galvanized (HDG) coil costs remained intact at USD 1170/MT.
According to ChemAnalyst, the Hot-Rolled Coil (HRC) prices will likely soar by more than 3% in the upcoming months owing to the strong buying sentiments. Following a week-on-week decline in Hot-Rolled Coil prices, domestic integrated steelmakers will raise the Hot-Rolled Coil price, indicating a likely bottom to the declining trend.
