Nucor’s (CSP) -the price charges for hot-rolled coils across all of its mills- increased today after 11 weeks of price stability, even as US steel market participants continue to report tepid activity and unremarkable demand across US flat steel markets.
In its usual Monday letter to its customers, Nucor increased its CSP by $10/nt to $760/nt ($838/mt) or $38.00/cwt., up from $750/nt ($827/mt) or $37.50/cwt., FOB mill. The previous price increase was reported Nov. 4 when it increased from $740/nt ($816/mt) or $37.00/cwt.
Even with today’s price increase, the Nucor CSP price remains at a discount to its nearest competitor Cleveland-Cliffs, which announced a $50/nt ($55.12/mt) price increase more than a month ago, for its February Hot Rolled Market Price to $800/nt FOB mill. It was expected that Nucor would match the earlier Cleveland price increase but that has yet to fully occur.
In the flat steel spot markets, the SteelOrbis weekly average for HRC was reported slightly less at $34.00-34.50/cwt., or $680-690/nt ($750-761/mt), down from $34.00-35.00/cwt., a week earlier.
Nucor’s California Steel Industries (CSI) monitor also increased $10/nt to $820/nt, ($904/mt) or $41.00/cwt., up from $810/nt ($893/mt) or $40.50/cwt., following its last $10/nt ($11/mt) increase on October 30.
Over the past several months, 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.