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 higher yet again, with posted prices reported by the mill up for an eighth week, the steel maker said in a letter to its customers.
This week’s CSP was reported up another $10/nt to $940/nt ($1,036/mt), or $47.00/cwt., up from $930/nt ($1,025/mt), or $46.50/cwt., one week earlier. Prior to the last eight 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, rose another $10/nt this week to $990/nt ($1,091/mt), or $49.50/cwt., up from $980/nt ($1,080/mt), or $49.00/cwt, seven days ago.
Nucor’s rising CSP price comes amid continued reports of slight improvements in domestic finished steel demand and tight mill inventories as a result of sharp reductions in flat steel imports. As domestic mills increase their productive output to make up for a lack of imports, insiders say lead times are lengthening and order books are filling faster. While Nucor says to customers 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 several weeks earlier.
Increased steel input costs in the form of scrap, also are supportive for finished steel prices, insiders said. January ferrous scrap is expected to rise between $20-50/gt ($20-51/mt) over recent December scrap settles. Flat steel benchmark US Midwest busheling scrap settles recently traded $20/gt higher at $395-405/gt, or $401-411/mt.
In this past week’s spot market trade, the SteelOrbis spot average price for hot-rolled coils on an FOB mill basis, rose another $5/nt following the previous week’s $22/nt increase to $900/nt ($992/mt), or $45.00/cwt., up from $895/nt ($987/mt), or $44.75/cwt., seven days earlier.
