US domestic flat steel pricing continued to advance this week, with hot-rolled coils (HRC) nearing $1,100 per net ton (nt), the first such time pricing has reached these lofty levels since April, 2023. Insiders told SteelOrbis that continued gains in weekly flat steel pricing is likely to cause reduced construction activity, and potential steel demand destruction, especially in the US Northeast.
Finished steel prices continue to advance because of growing domestic finished steel demand, reduced steel imports as a result of ongoing Section 232 steel import tariffs, as well as continued strength in steel making raw materials markets, like ferrous scrap and pig iron, insiders said.
“It’s hard to understand what is going on with flat steel pricing,” remarked one steel construction material fabricator to SteelOrbis at week’s end. “Sooner or later pricing is going to have to come down otherwise its going to be real hard to remain competitive.”
The fabricator added that some of his typical light steel beam construction materials customers were considering switching to traditional wood materials because of recent steel price advances.
“I met with at least a dozen different groups and some of them are considering moving back to traditional wood construction materials because steel pricing is so high,” he said. “Up in Boston, nobody’s working, and a lot of construction jobs are at a standstill because of high pricing and limited demand.”
In the weekly HRC markets, the SteelOrbis average price finished the week $12/nt higher on an FOB mill basis at $1,097/nt ($1,209/mt), or $54.85/cwt., up from $1,085/nt ($1,196/mt), or $54.25/cwt., one week earlier.
From recent gains seen in hot-rolled steel futures markets, many market insiders are betting that steel pricing will remain elevated through the remained of 2026. This week, HRC for August delivery traded at $1,189/nt, ($1,311/mt), or $59.45/cwt., up $20/nt from reported pricing one week earlier. In fact, for the next six months, HRC futures contracts averaged $1,153/nt ($1,271/mt), or $57.65/cwt., on May 29, a full 5 percent higher than current HRC SteelOrbis spot pricing assessments. The six-month futures average was about 8 percent higher than spot pricing one week ago, leading some to believe that spot pricing advances could be staged to slow, or could be nearing a peak.
“We’re hearing that spot standard ERW pipe pricing is increasing about $40.00-50.00 per ton each month as a result of increases seen in the flat steel markets,” said a US Gulf Coast pipe trader that tracks pricing in HRC markets for pipe pricing clues. “Right now standard ERW pipe pricing is at $1,640/ton ($1,808/mt), or $82/cwt., and continues to move higher with HRC.”
This week, Charlotte, North Carolina-based Nucor posted higher flat steel prices yet again, with its Consumer Spot Price (CSP) for flat-rolled coils posting a 19th weekly gain in the previous 21 weeks to $1,095/nt ($1,207/mt), or $54.75/cwt., up from $1,090/nt ($1,202/mt), or $54.50/cwt., on an FOB mill basis, one week earlier. Nucor’s California Steel Industries (CSI) CSP index also rose $5/nt to finish the week at $1,145/nt ($1,262/mt), or $57.25/cwt., up from $1,140/nt ($1,191/mt), or $57.00/cwt., one week before.
In the cold rolled coil markets, spot pricing saw additional $18/nt price increases to settle the week at $1,270/nt ($1,400/mt), or $63.50/cwt., up from $1,252/nt ($1,380/mt), or $62.60/cwt., one week earlier. Based on a $12/nt rise in weekly HRC prices and an $18/nt increase in weekly CRC values, the current spread between the two key steel grades increased $6/nt on the week to $173/nt or $8.65/cwt. At current, CRC pricing at $1,270/nt is at parity with pricing seen in hot-dipped galvenized markets, which traded another $25/nt higher on the week.
On the energy side, reduced uncertainty in the Middle East as peace talks between the US and Iran are seeming to advance has caused global oil prices to decline, even though they still remain at elevated levels versus before the war began in late February. On May 29, US benchmark West Texas Intermediate crude oil (WTI) pricing ranged between $86-88 per barrel (/bbl), off from $96-$98/bbl one week earlier, while globally, Brent crude oil traded between $90-$93/bbl, off from a wide range of $87-$105/bbl seen one week ago. Before the February 28 start of the war, WTI traded near $64/bbl, while Brent crude traded near $70-71/bbl.
Insiders said elevated oil pricing continues to pressure diesel fuel and ship and barge bunker fuel prices, leading to higher freight and fuel surcharges on domestic steel deliveries.
