US hot-dipped galvanized (HDG) and cold-rolled coil (CRC) prices fell this week due to lower offers. Ex-works US HDG price fell by $20/st to $960/short ton (st), while the CRC price fell by $20/st to $1,000/st, both on an ex-works basis. Repeatable HDG offers were reported between $950-980/st, with a Midwest mill offering $950/st for 500st of HDG.
A service center voiced concern that upcoming outages could hit the HDG and CRC markets the hardest as supply tightens in the next few months. The CRC market seems to be weakening with limited activity. US HDG mill lead time lengthened to 7-8 weeks from 6-8 weeks, while CRC lead times fell to 7-8 weeks from 8-9 weeks.
US hot-rolled coil (HRC) prices resumed a decline week as lower offers proliferated. Domestic US HRC Midwest and southern fell by $30/short ton (st) to $790/st ex-works. Midwest HRC prices have dropped 34pc since the peak of $1,200/st in April to their lowest since late-January.
Demand has remained relatively steady, with auto considered the best market overall. This has led to some buyers having larger inventories than others and lessened the pressure on service centers to go to competitors to fill inventory holes.
Much market discussion this week centered on proposed takeover bids for integrated steelmaker US Steel. Rival Cleveland-Cliffs confirmed its cash and stock bid for the company, which was rejected. Steel company Esmark offered $35/share, equivalent to $7.8bn, to US Steel's shareholders. A combination of US Steel and Cliffs would result in the largest steelmaker in the US with steel production of 34.2mn st/yr, leapfrogging Nucor.
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