The difference between premium scrap prices supplied to midwestern US plants and selling prices for hot rolled steel (HRC) narrowed to $ 878 per tonne after the close of March trading, down from $ 913 per tonne in the middle. February, but still more than double the $ 343 a year ago.
Higher scrap prices have had little impact on the spread, as limited steel supply and increasing delivery times keep price pressures on hot rolled coil (HRC).
According to Argus , HRC prices from a warehouse in the Midwest rose another $ 30 /t to $ 1,280 /t on a self-pickup basis, as semiconductor shortages have not yet impacted steel demand and service outages are likely to further constrain the supply shortage in the market became the USA.
In April, North Star BlueScope will hold a scheduled downtime at its Delta, Ohio electric arc furnace (EAF) flat mill. Nucor will also perform routine maintenance at its Gallatin plant in Kentucky in June, while US Steel will undertake a 25-day overhaul of Blast Furnace # 1 at Mon Valley Works in Pennsylvania in May.
The relaunch of JSW Steel USA's electric arc furnace in Mingo Junction, Ohio this month could help offset some of the lost production.
Continued growth in HRC spot prices and further gains this week have already outstripped much of the higher scrap prices. Even without further increases in HRC prices, the difference between the two varieties remains historically high.
Lingering semiconductor supply problems and lower levels of US auto production are likely to persist until at least mid-April, adding further support to the rise in domestic scrap trade in the US next month.
