Nucor Sheet Mill today announced new minimum base pricing for domestic hot rolled coil. According to the mill’s announcement, their new minimum base price for US domestic HRC has been set at $45 cwt. ($992/mt or $900/nt), FOB mill.
Yesterday, SteelOrbis reported that although the average HRC spot market price was trending at $43-$46 cwt. ($948-$1,014/mt or $860-$920/nt), FOB mill, that deals below that range had been heard within the marketplace based on volume.
Sources have indicated that they “don’t think that today’s announcement has legs,” adding that while this “may scare a few people into booking some small tonnage orders,” they do not believe that the new minimum HRC base price will be established at Nucor’s desired level.