Steelmaker Nucor decreased its weekly Consumer Spot Price (CSP)-the price it charges for hot-rolled coils across all of its mills- by $20/st ($22/mt) to $650/st ($717/mt) FOB mill, the steel producer said today in a letter to its customers. The California Steel Industries (CSI) hot rolled coil price was off $30/st ($33/mt) to $720/st ($750/mt) FOB mill, the steelmaker said.
This week’s CSP and CSI indexes differ from the week of July 8, when both the CSP and CSI indexes were unchanged for a second week at $670/st ($739/mt), and $750/st ($827/mt) FOB mill. This week’s CSP represents the lowest price offer for Nucor since the steel maker began releasing the weekly CSP indicator in early April.
Since releasing the CSP on April 8, the weekly price offer has declined nearly 22 percent, as US finished steel prices continued to flag amid low demand for finished steel goods such as automobiles and appliances. Steel market insiders add that low domestic scrap prices also are keeping flat steel values depressed.
According to SteelOrbis data for the week of July 8, domestic HRC prices were slightly lower, with trading ranges discussed at $665-675/st ($745-756/mt) delivered to customer, versus the prior week’s $670-680/st ($739-750/mt).
On June 25, one of Nucor’s key competitors, Cleveland Cliffs, announced it had officially opened its order book for August hot-rolled coil (HRC) and established a base price of $720/st FOB mill. This marks a significant decrease from their previous price guidance of $800/st FOB mill for July, signifying a drop of $80/st, the steelmaker said. The Cleveland Cliffs order book base price for August may be revised lower if HRC prices continue to decline.
During the recent July buy cycle, Midwest busheling prime grade scrap, used mostly to make HRC, declined $20/gt ($20/mt) on a delivered to mill basis to $355-375/gt ($361-381/mt), while HMS#1, which has a more limited application locally, settled flat to June at $320/gt ($325/mt) delivered, scrap market insiders said.
