US prices for hot-rolled coil (HRC) continued to fall this week on weak spot demand and cautiousness from buyers expecting pricing to slip more.

The Argus weekly domestic US HRC index fell by $4.50/st to $594.75/st ex-works Midwest today on eight indications from buy- and sell-side sources.

Lead times stayed flat at 5-6 weeks, with little movement in the spot market. Market participants noted that some mills, especially integrated steelmakers and some electric arc furnace (EAF) minimills, were well booked into April, while others have much shorter lead times available.

One large service center said the spreading lead times between the different mills is usually a sign of a weakening domestic steel market.

A growing worry is the potential for the ongoing coronavirus that is mainly impacting China to ripple through the global manufacturing chain.

Electronic producer Apple said yesterday that it expects its first quarter revenue will be impacted by lower global supply of its iPhone products due to a slower than expected ramp up of its Chinese production facilities after the extended Lunar New Year holiday.

The three major US automakers – Fiat-Chrysler, Ford, and General Motors – said they have not experienced production impacts from the coronavirus outbreak.

The spread between ferrous scrap #1 busheling scrap delivered US Midwest consumer and HRC stayed flat in the last week at $333.59/st, and is lower compared to the spread of $367.80/st from the prior year.

HRC import prices into Houston fell by $30/st to $580/st ddp as South Korean sellers lowered offers. Market participants noted little demand due to low domestic prices and lead times.

Plate prices fell by $3.50/st to $686.50/st as plate demand remains weak, with lead times around 4-5 weeks.

Futures pricesin the CME HRC futures market were mixed in the last week. March HRC prices edged up by $1/st to $553/st while April future prices rose by $7/st to $551/st. May prices slipped by $1/st to $548/st, while June prices ticked up by $1/st to $551/st. July futures prices fell by $4/st to $551/st, while August HRC future prices down by $3/st to $553/st. September futures prices at at $554/st, with the highest futures prices for the year outside of February at $560/st in November and December.