Nucor’s (CSP) -the price charges for hot-rolled coils across all of its mills- was steady for a seventh week today, even as US steel market participants continue to report tepid activity and unremarkable demand in US flat steel markets. Two weeks ago, competitor Cleveland-Cliffs increased its February spot price.
In its usual Monday letter to customers, Nucor said its CSP was stable at $750/nt ($827/mt) or $37.50/cwt., FOB mill, up from $740/nt ($816/mt) or $37.00/cwt., most recently for the weeks of November 4 and October 28. Since October 14, the CSP price has increased by nearly 4.2 percent, while since July 15, the CSP has risen nearly 15.4 percent.
The Nucor CSP price is currently priced at a discount to its nearest competitor Cleveland-Cliffs, which announced a $50/nt ($55.12/mt) price increase two weeks ago, for its February Hot Rolled Market Price to $800/nt FOB mill.
In the flat steel markets, the SteelOrbis spot weekly average for HRC was noted $0.75/cwt., or $15/nt ($17/mt) higher last week at $690/nt, ($761/mt), delivered to customer, up from $675/nt ($744/mt) or $33.50-34.00/cwt., seven days earlier.
Nucor’s California Steel Industries (CSI) monitor was also reported steady for a seventh week at $810/nt ($893/mt) or $40.50/cwt., following its last $10/nt ($11/mt) increase on October 30.
Over the past several months, flagging finished steel demand resulted in Nucor reducing its CSP as low as $650/nt ($717/mt), or $32.50/cwt. during the week of July 15. Since that time, however, prices have fallen only once for two weeks on October 14 and October 21 to $720/nt ($794/mt) or $36.00/cwt., from $730/nt ($805/mt) or $36.50/cwt. Market insiders told SteelOrbis earlier that Nucor has kept its posted CSP pricing above the mills’ $32.50/nt variable cost of doing business because selling below that price could cause the mill to lose money, they said.
Since the first series of price increases were announced on July 29, Nucor’s CSP has increased 11.1 percent to its recent $750/nt high. Prior to the increases, Nucor’s CSP price had lost nearly 22 percent of its value on flagging demand for finished steel products since the CSP was first released in early April at $830/nt ($915/mt) or $41.50/cwt.