Cold-rolled coil steel prices in the US averaged a $192/st premium to hot-rolled coil in 2017, according to S&P Global Platts data.
The premium matches 2016's level when the two products began to show a significant divergence from historical premiums.
During 2011-2013, the difference between the two products averaged $106/st in all three years. In 2014, the average spread widened to $124/st and marginally widened to $128/st in 2015.
CRC prices were stronger relative to HRC during the first half of 2017 compared with the second-half of the year. The price spread between the two products averaged $202/st during the first six months of 2017 and narrowed to an average of $181/st in the last six months. The differential widened slightly to an average of $185/st during the fourth quarter from $176/st in the prior quarter.
The daily S&P Global Platts TSI US HRC assessment was calculated unchanged at $646.75/st Friday, while the daily US CRC assessment was unchanged at $832/st. The most recent spread is $185.25/st.
Mills are continuing to push for a $200/st premium between the two products with offers. However, HRC prices are showing more strength than CRC and hot-dipped galvanized products.
Prices are expected to move higher in the first quarter as mills hold firm on new offers.
The market is slow between the Christmas and New Year's holidays, leading to limited movement, according to a service center. Still, "mills are sending a consistent message that those numbers will not be available when we get back in the new year," he added.
The combined S&P Global Platts TSI price index uses a volume-weighted average calculation -- according to TSI's standard -- to determine value on an ex-works Indiana basis.
