Nucor’s (CSP) -the price charges for hot-rolled coils across all of its mills- increased for a fifth week today following an earlier 11-week period of price stability, fueled by rising scrap prices and an expected decline in imports likely once Trump administration 25 percent tariffs take effect in March, market insiders told SteelOrbis this week.
In its usual Monday letter to its customers, Nucor reported its CSP up another $40/nt ($44/mt) to $860/nt ($948/mt) FOB mill, or $43.00/cwt., up from the previous week’s $30/nt ($33/mt) increase to $820/nt ($904/mt), or $41.00/cwt. Since the beginning of recent Nucor price increases for HRC on January 27, values have risen 14.7 percent. Prior to that, prices were stable for nearly three months at $750/cwt.
On February 21, Nucor’s nearest competitor, Cleveland Ohio-based Cleveland-Cliffs announced its April Hot Rolled Market Price would rise $100/nt to $900/nt FOB mill ($992/mt), or $45.00/cwt.
Nucor’s California Steel Industries (CSI) monitor also increased another $40/nt ($44/mt), to $920/nt ($1,014/mt), or 43.00/cwt., FOB mill, up from this past week’s $30/nt increase to $880/nt ($970/mt) FOB mill, or $44.00/cwt.
During February monthly buy-cycle, Midwest busheling scrap traded an average of $45/gt ($46/mt) premiums to January scrap settled values. Insiders said low inventories and the effects of cold snowy weather across much of the eastern two-thirds of the US were supportive for February scrap prices. March busheling scrap in the Ohio Valley is last discussed at $20-40/gt premiums ($20-41/mt) to February scrap market settled values, insiders tell SteelOrbis.
New recently announced Section 232 tariffs on imported steel from the Trump administration are expected to further reduce imports of steel into the US, allowing domestic producers more levity to raise prices, market insiders told SteelOrbis.
In the flat steel spot markets, the SteelOrbis weekly average for HRC climbed again to an average $850/nt ($937/mt), or $42.50/cwt., up from $750/nt ($827/mt), or $37.50/cwt., a week earlier.
During the third and fourth quarters of 2024, flagging finished steel demand resulted in Nucor reducing its CSP as low as $650/nt ($717/mt), or $32.50/cwt. during the week of July 15. Since that time, however, prices have fallen only once for two weeks on October 14 and October 21 to $720/nt ($794/mt) or $36.00/cwt., from $730/nt ($805/mt) or $36.50/cwt. Market insiders report that Nucor continues to keep its posted CSP pricing above the mills’ $32.50/cwt. variable cost of doing business because selling below that price could cause the mill to lose money, they said.