US flat steel pricing continues lower in slow trade as buyers seek price bottom

Friday, 07 June 2024 19:37:16 (GMT+3)   |   San Diego

US flat steel prices continued down this week on continued low demand, as buyers wait for prices to bottom out before pulling the trigger on new spot transactions. Market insiders also said lower June scrap pricing was keeping many away from the flat steel spot markets and from purchasing at current prices.

“Right now, the flat steel market is very shallow,” said one SteelOrbis market insider. “With buyers waiting for prices to bottom, there’s not a lot of tons being transacted.”

Midwest busheling scrap being is talked June 6 at $40/nt ($44/mt) discounts to May, while shredded was discussed at $20/nt ($22/mt) lower than May scrap values. The June scrap market is expected to settle next week. East Coast shredded scrap is discussed last at $20/nt ($22/mt) discounts to May.

Another SteelOrbis contact said given low demand and a lower call for scrap, the flat-rolled market could continue lower, so many buyers remain sidelined.

“We basically feel that the market has more room to go down,” the contact told SteelOrbis, hinting that prices for HRC could decline as low as $35-$36/cwt. ($772-$794/mt or $700-$720/nt). “We also expect to see mill announcements before July 4th, that they will be raising the prices for hot-rolled. The mills I hear are pretty tired of these low prices.”

This week’s lower flat steel pricing is a continuation of the trend seen late last week, when June scrap forecasts began to come in as much as $50/nt ($55.00/mt) lower, even as Nucor announced the second of two weekly price increase in its Consumer Spot Price (CSP) for hot-rolled coils. This week, however, Nucor kept its CSP flat at $780/nt ($860/mt), with market insiders hinting the Nucor move could signal a price “bottom” could be near.

Domestic spot HRC prices are now assessed $0.75/cwt ($16.50/mt or $15/nt) lower at $37-$37.50/cwt. ($815-$827/mt or $740-$750/nt), compared with $37.75-$38.25/cwt. ($832-$843/mt or $755-$765/nt) last week. Lead times for HRC are last estimated at 4 weeks, indicating that markets remain well supplied and mill inventories adequate heading into June, market insiders said.

Another SteelOrbis contact said high interest rates, an uncertain political environment, and low raw materials prices (for scrap) were keeping flat-rolled steel prices down.

“There is some business going on, but nothing gangbusters,” he said.

In other steel grades, CRC is assessed at $53.00-$56.00/cwt. ($1,102-$1,234/mt or $1,000-$1,120/nt) depending on the size and specs of the purchase. Most trades are discussed at $53.00/cwt. ($1,168/mt or $1,060/nt) compared with $54.75-$55.50/cwt. ($1,207-$1,224/mt or $1,095-$1,110/nt) this past week.

On the galvanized front, HDG was discussed in light trade at $50-$51.00/cwt. ($1,102-$1,124/mt or $1,000-$1,020/nt), versus $51.50-$52.00/cwt. ($1,114-$1,146/mt or $1,030-$1,040/nt) FOB mill, seven days ago. US flat steel pricing continues lower in slow trade as buyers seek price bottom

Lead times for CRC and HDG products are discussed unchanged at 4-8 weeks, suggesting that markets remain mostly well supplied with mill inventories nearly adequate to meet current requirements heading into June.


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