US flat market steady as buyers are sidelined on weak economic data

Friday, 26 April 2024 00:50:55 (GMT+3)   |   San Diego
       

The US flat rolled steel market is once again stable, as weak US economic data and rising energy prices did little to spur steel buyer interest this week, sources told SteelOrbis.

“The lackluster GDP report and rising energy costs kind of clouds the outlook for an overall advancement in steel prices,” one Texas-based contact told SteelOrbis. “Buyers, especially the larger ones that purchased flats in the sub-$40s, can afford to sit it out for a while and wait for lower prices.”

This week’s average US domestic spot HRC price range remains unchanged at $40.50-$42.50 cwt. ($893-$937/mt or $810-$850/nt) FOB mill, with lead times steady at 3-7 weeks.

US economic growth was reported Thursday at levels considered weaker than Wall Street estimates. Data from the US Department of Economic Analysis indicated gross domestic product for the first quarter of 2024 -a broad measure of all goods and services produced in the January-through-March period-increased at just 1.6%, against a Wall Street estimate calling for a 2.4% gain. Consumer spending rose 2.5% for the first quarter of 2024, also off from an expectation for a 3% gain. Consumer spending rose 3.3% during the fourth quarter last year.

On the energy front, West Texas Intermediate (WTI) crude oil, the US benchmark, stands at $85.57 per barrel (/bbl), up from $78.76/bbl one year ago, though off from a high of $123.70/bbl posted on March 8, 2022. Nationwide average retail mid-grade gasoline prices stand at $3.791 per gallon, up from $3.751/gal last week and $3.769/gal one year ago.

Meanwhile, CRC and HDG spot market pricing was flat to last week’s level at $55.00 cwt. ($1,213/mt or $1,100/nt) and $53.00 cwt. ($1,168/mt or $1,060/nt) FOB mill, respectively. Lead times for both are steady at 6-10 weeks. Market insiders tell SteelOrbis galvanized spot markets remain “a bit tight” though prices continue to be flat with sellers preferring hold off on quick sales in case prices rise in the last week of the month.

“It’s fairly quiet right now, with the overall sentiment flat and cautious,” a sidelined buyer told SteelOrbis. “It’s a bit tenuous right now, with sellers’ big ideas about prices being 50 cents higher just kind of drifting in the wind.”

Price offers from producing mills were also reported steady to slightly higher on the week with Nucor’s CSP for HRC reported at $41.75 cwt. ($920/mt or $835/mt) with 3-5 week lead times also unchanged. No new offers were heard from Cleveland Cliffs since their second HRC offer earlier in April at $45 cwt. ($992/mt or $900/nt), FOB mill gained little traction, with most transactions at or below $42.50 cwt. ($937/mt or $850/nt), FOB mill.

On the scrap front, sources tell SteelOrbis the most likely scenario for scrap next month (May) continues to be sideways to April price levels, with a potential for higher prices possible for bushelling grades.

“We could see perhaps increases of $10-$20/gt as a result of higher bushelling values,” a source told SteelOrbis.


Similar articles

Chinese HRC exporters raise prices slightly in anticipation of more stimuli

05 Nov | Flats and Slab

Major steel and raw material futures prices in China – November 5, 2024 

05 Nov | Longs and Billet

China Oriental Group and ArcelorMittal to jointly build two flat steel plants in China

05 Nov | Steel News

Nucor weekly Consumer Spot Price (CSP) for hot rolled coils steady following earlier weekly gains

04 Nov | Flats and Slab

Ex-China steel plate prices move down further

04 Nov | Flats and Slab

Major steel and raw material futures prices in China – November 4, 2024 

04 Nov | Longs and Billet

US hot-rolled coil pricing largely flat on the week following recent spot market slump

01 Nov | Flats and Slab

Brazilian HRC export price declines in two weeks

01 Nov | Flats and Slab

Global View on HRC: Prices see only small corrections, but obvious improvement in trades

01 Nov | Flats and Slab

Romanian flat steel spot prices stable as demand fails to improve further

01 Nov | Flats and Slab