Charlotte, North Carolina-based Nucor’s Consumer Spot Price (CSP) -the posted price it charges for hot-rolled coils across all of its mills- was reported higher once again, with posted prices reported by the mill up for six straight weeks, the steel maker said in a letter to its customers.
Nucor’s rising CSP price comes amid reports of slight improvements in domestic finished steel demand amid tightening mill inventories and steady to potentially higher steel input costs, which is causing order books to fill and lead times to lengthen. Some insiders reported to SteelOrbis lead times recently have lengthened to 8-10 weeks, up from 3-5 weeks several weeks earlier. Insiders told SteelOrbis stable to potentially higher raw material prices in the way of December ferrous scrap remains supportive for flat and long finished steel segments.
This week’s CSP was reported at $920/nt ($1,014), or $46.00, up $5/nt from ($915/nt, ($1,009/mt), or $45.75/cwt., Prior to the last six weeks of steady Nucor price increases, the last time the CSP price rose was during the week of Aug. 25, when the CSP rose $10/nt to $875/nt. The price remained stable at that level for eight weeks, despite persistent upward movement in local HRC spot market pricing as reported by SteelOrbis.
Nucor’s California Steel Industries (CSI) base price, which also remained steady for eight consecutive weeks, rose another $5/nt higher to $970/nt ($1,069/mt), or $48.50/cwt., up from $965/nt ($1,064/mt), or $48.25/cwt., one week ago.
In this past week’s spot market trade, the SteelOrbis spot average price for hot-rolled coils on an FOB mill basis, rose another $8.00/nt, following an earlier weekly $10/nt rise to $873/nt ($962/mt), or $43.65/cwt., up from $865/nt ($954/mt), or $43.25/cwt., one week earlier.
Based on a sideways to higher monthly call among SteelOrbis scrap market respondents, a steady to $10-20/gt premium over the November settle for Midwest prime busheling scrap could see December pricing settle near Detroit, Michigan at $385-395/gt ($391-401/mt), while Midwest shredded scrap is seen steady to up near $365-371/gt ($371-376/mt).