US-based EAF steelmakers Nucor and Cleveland Cliffs today both announced new minimum base pricing for domestic hot rolled coil. Per their correspondence, both companies are increasing base HRC prices to $40 cwt. ($882/mt or $800/nt), effective with all new orders.
As of late last week, HRC prices were trending at $35 cwt. ($772/mt or $700/nt) FOB mill.
Sources have said that while there’s widespread belief that mills will roll out a series of price increases after the UAW strike concludes, with the hopes of getting HRC up to $50 cwt. ($1,102/mt or $1,000/nt), it’s not immediately clear whether the current price increase will gain traction.
“Don’t know yet if today’s announcements will take or not but once strike is over hold on to your hats,” a source said. “We feel mills will try to raise prices by at least $5.00 cwt ($110/mt or $1,000/nt) per ton.”