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 five straight weeks, Nucor said in a letter to its customers.
Nucor’s rising CSP price comes amid reports of slight improvements in domestic finished steel demand which is causing mill 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 ago. Insiders told SteelOrbis stable to potentially higher raw material prices in the way of December ferrous scrap remains supportive for flat finished steel values.
This week’s CSP was reported at $915/nt, ($1,009/mt), or $45.75/cwt., up another $5/nt from $910/nt ($1,003/mt), or $45.50/cwt., one week earlier. Prior to the last five 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, was reported another $5/nt higher at $965/nt ($1,064/mt), or $48.25/cwt., up from $960/nt ($1,058/mt) or $48.00/cwt., at last report.
In this past week’s spot market trade, the SteelOrbis spot average price for hot-rolled coils on an FOB mill basis, rose another $10/nt, following a week-earlier $30/nt increase to $865/nt ($954/mt), or $43.25/cwt.
Based on a sideways to higher December scrap outlook, Midwest prime busheling scrap vicinity Detroit, Michigan, could settle sideways to potentially $10-20/gt higher than the November settle at $385-395/gt ($391-401/mt), scrap insiders said. Midwest shredded scrap is seen steady to up near $365-371/gt ($371-376/mt).