Domestic US hot-rolled coil (HRC) spot prices jumped this week as mills held the line on price increases announced last week and buyers attempted to eek out some last minute deals.

The Argus weekly domestic US HRC index rose by $17/short ton (st) to $487.75/st ex-works Midwest on 13 indications from sell- and buy-side sources.

Lead times rose to 3-4 weeks from 2-3 weeks as mills were said to have added many cheaper tons to their books prior to announcing a steel sheet price increase on 1 May. Many steelmakers have made price increase announcements, led by ArcelorMittal, Nucor, and US Steel.

Many in the market reported that transactions were made as low as $400/st prior to the price increase, helping to boost mill order books.

Steelmakers said they would refuse any orders below $500/st, and many have begun to work on their June order books.

Demand continued to be weak, even as some US auto plants began to restart. Daimler, the owner of Mercedes-Benz, opened up its SUV plant in Alabama and van plant in South Carolina on 27 April, while BMW, Hyundai, and Kia all began reopening their US plants yesterday.

Fiat-Chrysler (FCA) plans to begin reopening its North American operations on 18 May. The other two US-based automakers – Ford and General Motors – are expected to be aiming for a similar time frame.

Automakers have to reopen to restore badly curtailed demand, market participated noted. Most automakers shut their North American operations in mid- to late-March as the Covid-19 pandemic rippled across the US.

HRC import prices into Houston dropped by $72.50/st to $507.50/st ddp as more offers into the US were reported after weeks of nearly nonexistent trading.

Futures prices in the CME HRC futures market reflected an increasingly optimistic sentiment, with all increasing by double digits in the last week. June futures prices rose by $28/st to $502/st, while July prices were up by $13/st to $510/st. August prices rose by $10/st to $515/st, and September futures prices increased by $11/st to $521/st. October HRC futures prices rose by $15/st to $532/st, while November prices increased by $13/st to $532/st. December HRC prices rose by $13/st to $534/st.