Charlotte, North Carolina-based Nucor's Consumer Spot Price (CSP) -the posted base price it charges for hot-rolled coils (HRC) across all of its regional mills- was reported $10/nt higher for a third week today at $1,155/nt ($1,273/mt), or $57.75/cwt., up from the $1,145/nt ($1,262/mt), or $57.25/cwt., price reported one week ago.
Nucor's California Steel Industries (CSI) base price, was reported another $15/nt higher at $1,215/nt ($1,339/mt), or 60.75/cwt., up from the $1,200/nt ($1,323/mt), or $60.00/cwt., FOB mill level reported one week earlier.
Flat steel insiders told SteelOrbis recent Nucor CSP price increases reflect continued strength in US finished steel markets as well as the effects of sharp reductions in global finished steel imports that came about as a result of Section 232 steel tariffs which have reduced finished steel imports by more than 30 percent versus year-ago levels.
Recent elevated oil prices as a result of heightened geopolitical tensions in the Middle East also were said to one of the fundamental considerations driving rising costs across the entire finished steel value chain, insiders told SteelOrbis.
West Texas Intermediate crude oil traded August 3 at $79.00-79.80/bbl, off from $82-83.50 per barrel one week earlier. Brent crude oil sold at $83.40-83.83/bbl, off about 5 percent on the day and off from about $82/bbl one week ago. Insiders said oil prices were on the decline with renewed peace efforts in the Middle East.
As available steel supplies remain reduced by a lack of imports, and as US mills seek to manage annual maintenance requirements, insiders said US mills were producing at an 80.5 percent level of capacity this morning, up from the 79.3 percent of capacity level reported one week earlier, according to data from the American Iron and Steel Institute (AISI). And while raw steel production remains lower on a weekly basis at 1,830,000 net tons, production remains up 4.9 percent from the year before.
On the raw materials front, July scrap traded largely flat to down $10-20/gt from June levels, mostly depending on the US region. For August, the latest market sentiment calls for monthly settles to finish similar to July levels, scrap contacts told SteelOrbis.
In weekly HRC spot markets, the SteelOrbis HRC price average price closed the week ended July 31 up $5/nt to $1,175/nt ($1,295/mt), or 58.75/cwt., up from a $10/nt gain one week before to $1,170/nt ($1,290/mt), or $58.50/cwt.
Since the end of October, when CSP prices started a steady weekly advance following an eight-week period of stability at $875/nt, the Nucor CSP has increased about 30.1 percent.
