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 today at $1,145/nt ($1,262/mt), or $57.25/cwt., up from $1,135/nt ($1,257/mt), or $56.75/cwt., the week before, when prices were reported stable for the previous two weeks.
Nucor's California Steel Industries (CSI) base price, was reported $15/nt higher at $1,200/nt ($1,323/mt), or $60.00/cwt., FOB mill, up from $1,185/nt ($1,306/mt), or $59.25/cwt., a price level it also held for two weeks.
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 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 be adding to the fundamentals driving rising prices across the entire finished steel value chain, insiders told SteelOrbis.
West Texas Intermediate crude oil traded July 27 at about $82-83.50 per barrel, a bit higher than one week earlier when WTI sold at $82 per barrel (/bbl). Brent crude oil sold at about $82/bbl, off from $88/bbl one week earlier as tension in the Middle East were seen easing.
As available supplies remain reduced by a lack of imports, and as US mills seek to manage annual maintenance shut down requirements, insiders said US mills continue to produce at levels in excess of 79.3 percent of capacity, up from the prior week's report at 78.2 percent capacity, according to data from the American Iron and Steel Institute (AISI). And while raw steel production remains below a target 80 percent of capacity level with weekly production at 1,830,000 net tons, output remains up 3.3 percent from the year before.
On the raw materials front, July scrap traded largely flat to down $10-20/gt from June levels, largely depending on the US region. While it remains early, scrap insiders told SteelOrbis August scrap is seen settling similar to July levels.
In weekly HRC spot markets, the SteelOrbis HRC price average price closed the week ended July 24 up $10/nt to $1,170/nt ($1,290/mt), or $58.50/cwt., up from the following week's $2/nt gain to $1,160/nt ($1,279/mt), or $58/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 33.71 percent.
