As previously predicted, Cleveland Cliffs today announced they’ve established new, minimum base pricing for HRC. According to that announcement, the price has been revised upward to $50 cwt. ($1,102/mt or $1,000/nt). FOB mill.
The announcement comes exactly one week after the steelmaker announced their last $5.00 cwt. ($110/mt or $100/nt), and it’s the second $5.00 cwt. announced in three weeks.
As previously reported, sources have noted that they’re not surprised by the announcement, as many have believed that mills would try to push HRC up to $50 cwt. ($1,102/mt or $1,000/nt), as soon as the UAW strike against Ford Motor Company (FMC), Stellantis, and General Motors (GM) reached an end.
All sources polled said they believe that current supply / demand levels are not supportive of long-term, sustained HRC prices at this level.
“These announcements all play into 2024 [contract price negotiations],” a source said. “This is all about mills trying to drive the spot market up to get higher contract pricing. I don’t think there’s a single person out there that believes the market is supportive of $50 cwt. HRC.”