The US flat rolled steel market has been relatively stable in the past seven days following two weeks of steady price gains, as earlier price offers from Cleveland Cliffs were largely “cancelled out” by later and lower-priced offers from Nucor, sources tell SteelOrbis.
The “battle” of the mills commenced early on, sources said, as Cleveland Cliffs’ most recent price increase attempted to raise HRC spot market prices to $45/cwt ($992/mt or $900/nt) largely fell by the wayside, as market players continue to report that the bulk of transactions are taking place at or below $42.50/cwt ($937/mt or $850/nt), FOB mill.
On Monday of this week, Nucor rolled out their new weekly Consumer Spot Price (CSP), which put their weekly spot market price at $41.50 cwt. ($915/mt or $830/nt), FOB mill.
This week, sources have confirmed that the average US domestic HRC price range is trending at roughly $40.50-$42.50/cwt ($893-$937/mt or $810-$850/nt) FOB mill, with lead times at 3-7 weeks versus the prior week’s 4-5 weeks.
CRC and HDG spot market pricing is being heard at approximately $55.00 cwt. ($1,213/mt or $1,100/nt) and $53.00 cwt. ($1,168/mt or $1,060/nt) FOB mill, respectively, against $54-$57 cwt ($1,191-$1,257/mt or $1,080-$1,140/nt) FOB mill, one week ago. Lead times for both are being heard at roughly 6-10 weeks.
Steady pricing follows two weeks of gains, inspired by renewed service center buying interest following several weeks of limited flats purchases leading up to the April scrap buy cycle. One market source opined there was little if any justification for higher prices given price gains already seen since the beginning of April. “It does feel like a move to push prices up rather than something where the demand warrants it,” he said.
Another commented, “I really don’t see anything in the short term that will impact pricing aside from lack of availability. There really is no true justification for the price increases at the moment.”
Still another said, “Large tonnage booked sub-$40/cwt. ($882/mt or $800/nt) FOB mill, combined with weak international steel prices and abundant scrap availability” were other reasons cited for flat prices.
The likelihood of higher prices by month’s end still exists, traders cautioned, though additional supply from abroad could thwart seller efforts. “I think we will see another price increase before month end although I don’t suspect it’ll be a huge increase,” another source told SteelOrbis.