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US hot-rolled coil prices inch closer to $900/st

  • Tuesday, June 5, 2018
  • Source:ferro-alloys.com

  • Keywords:US,hot-rolled coil
[Fellow]US hot-rolled coil prices inch closer to $900/st

[ferro-alloys.com]US hot-rolled coil pricing moved closer to $900/st Monday as mills were heard to be holding offers firm at that level and some were targeting even higher, according to market feedback.

The daily Platts TSI US HRC assessment was calculated at $898.50/st Monday, up $4.50/st from Friday, while the daily Platts TSI US cold-rolled coil assessment was calculated at $1,018.25/st, up $2.25/st from Friday.

A mini-mill producer that was previously selling at $880/st has set a floor of $900/st for HRC and has indicated it may move prices an additional $10-$20/st higher, several buy-side sources said.

"The market fundamentals seem strong for HRC," a service center source said.

HRC demand remains robust, a mill source said, with a number of sources pointing to an uptick in energy-related demand. Additionally, news last week that Canada, Mexico and the EU would be subject to the US' 25% tariff on steel imports should be positive for domestic demand, sources said, however, a mill source was not seeing this having a direct impact on inquiries yet.

"Customers are calling us, asking what is going on, but it's still status quo for us," the mill source said. "We don't really know anything about how this will play out either."

Under Section 232 trade regulations, President Donald Trump can adjust the tariff level set on countries at any given time, which still leaves lingering uncertainty in the market, the first service center source said.

"It's a tough market right now," he said. "I wouldn't go too long, but I also wouldn't go too short."

No mills have officially raised prices, but there has been talk that HRC offers will be going up, a second service center source said. He said one mill that was currently offering at $900/st has said it was looking to move its offers to $920/st.

While the outlook for HRC appears to be strong in the near-term, the first service center source pointed to the narrowing spread between HRC and cold-rolled and galvanized substrate. He put current galvanized substrate pricing at $990-$1,010/st, excluding zinc coating extras. The mill source said they were currently offering CRC and galv base at $1,040/st, excluding extras.

"There's maybe been a little softening, but I would say it's been a slow leak in recent weeks," the first service center source said.

A third service center source said he believes galvanized pricing may be past peak no matter what happens with tariffs.

"The mills never did book to 80% of capacity and automotive is slowing," he said. "Imports are slowing I think simply because people are bought up."

The total volume of steel demand in the US has not changed enough year over year to explain the high price levels, he said.

"Zinc is down. Iron ore is down. The auto industry is down," he said, adding there is some concern that prices will see a correction in the fourth quarter.

The weekly Platts TSI US HDG price assessment was calculated at $1,103.50/st, down $9.75/st on week. The price includes a G90 coating weight extra.

The combined Platts TSI price index uses a volume-weighted average calculation -- according to TSI's standard -- to determine value on an ex-works Indiana basis.

  • [Editor:王可]

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