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 flat for a second week again following recent scant holiday trade, even as January scrap is likely to trade higher when monthly supply negotiations begin later this week, market insiders told SteelOrbis.
Prior to the most recent two weeks of price stability, the Nucor CSP price increased nine straight times as insiders reported slight improvements in domestic finished steel demand and tight mill inventories as a result of sharp reductions in US flat steel imports. As domestic mills increase their productive output to make up for a continued lack of imports, insiders say lead times are lengthening and order books are filling faster than during previous months.
This week’s CSP was reported steady at $950/nt ($1,047/mt), or $47.50/cwt., up from $940/nt ($1,036/mt), or $47.00/cwt., reported three weeks earlier. 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.
And, even as Nucor says in its customer letter that it can fill CSP spot HRC orders in 3-5 weeks, some insiders reported to SteelOrbis that lead times for new flat steel rolling from other mills and suppliers have lengthened to 8-12 weeks, up from 8-10 weeks previously.
Increased steel material input costs in the form of scrap, also are supportive for finished steel prices, they said. January ferrous scrap is forecast to trade this week $20-30/gt ($20-31/mt) over recent December scrap settles, which were sideways to $20/gt higher during last month’s December buy-cycle trade. Flat steel benchmark US Midwest busheling scrap settled recently $20/gt higher at $395-405/gt, or $401-411/mt.
Nucor’s California Steel Industries (CSI) base price, which also remained steady for nine consecutive weeks, stands unchanged on the week at $1,000/nt ($1,102/mt) or $50.00/cwt., up from $990/nt ($1,091/mt), or $49.50/cwt., three weeks earlier.
In spot market trade prior to the US Christmas holiday, the SteelOrbis spot average price for hot-rolled coils on an FOB mill basis, rose $10/nt following an earlier $5/nt increase to $910/nt., ($1,003/mt), or $45.50/cwt., up from the previous week’s $900/nt ($992/mt), or $45.00/cwt., a week earlier.
