During the first week of January, , Nucor and Cleveland Cliffs both announced that they were raising US HRC base prices, with Cliffs announcing new target minimum base pricing of $57.50 cwt. ($1,268/mt or $1,150/nt), FOB mill.
This week, however, HRC prices are mostly stagnant, and continue to be heard at $52.50-$54.50 cwt. ($1,157-$1,202/mt or $1,050-$1,090/nt), FOB mill.
CRC and HDG prices, on the other hand, are up by $1.00 cwt. in the past seven days and are now being heard at roughly $65-$67 cwt. ($1,433-$1,477/mt or $1,300-$1,340/nt), FOB mill.
Numerous sources continue to report a strong belief that the market has peaked, especially in light of the fact that prime grade scrap prices trended down in most regions of the US during this month’s buy cycle.
One source polled said he believes we’re fast approaching the downward slope of the bell curve. “The big question at this point is how quickly prices come down,” he added, noting that he believes we’re more likely to see a slower downward drift as opposed to “a fall off the cliff.”
“I think the current cycle is at or near its end,” another added. “And just like we’ve seen in the past, what goes up inevitably winds up coming back down.”