US flat steel prices were mixed this week amid reports that July scrap could settle sideways for July even as output from domestic steel mills is reported to be improved versus one year earlier. Even though weekly values were mixed, insiders added that US mills could continue to raise prices near term in reaction to 50 percent steel import tariffs that have significantly reduced competition from imports.
SteelOrbis insiders continue to report that current 50 percent tariffs make domestic steel more attractive against imported material from abroad with a 50 percent tariff attached. The lack of competition from imports they say, allows mills the ability to continue to raise prices.
“We’re likely to see another round of price increases come from US mills in the near term,” one steel insider told SteelOrbis this week. “With tariffs in play, domestic mills still have plenty of room to negotiate their pricing against higher-priced imports.”
This week’s SteelOrbis spot HRC price average is assessed unchanged at $890/nt ($981/mt), though up from $870-$900/nt ($959-992/mt) or on average $885/nt, ($976/mt) two weeks earlier.
On the mill side, key US steel maker Nucor increased its Consumer Spot Price (CSP) for HRC to $910/nt ($1,003), or $45.50/cwt., up from $900/nt ($992/mt), a price it held for two previous weeks. The CRU HRC remained flat for a second week at $901/nt ($993/mt) or $45.05/cwt.
While no new reports on mill price increases were noted this week, insiders say all previous price increases, with the exception of the $40/cwt., rebar price increase from CMC, largely have been accepted by the market.
In other flat steel markets, spot CRC is reported on average $1,050/nt, down $10/nt on the week, following a $40/nt increase the week prior to $1,060/nt ($1,168/mt), or $53.00/cwt. Given flat HRC and lower CRC weekly values, the weekly key price spread between the two steel grades stands $10/nt less at $160/nt ($176/mt), off from $170/nt, ($187/mt), one week earlier.
In the coated finished steel marketplace, spot HDG base product on a delivered basis is assessed $10/nt less at on average $1,000/nt ($1,102/mt), or $50/cwt., in continued slow trade, versus reports at $1,010/nt ($1,113/mt) or on average $50.50/cwt., one week earlier.
And while the July scrap market appears flat for now, some bullish fundamentals remain in play. Some insiders still claim domestic scrap supply is beginning to wane and that US East Coast exports could be improved for July. Media reports now also indicate that US domestic mills are running at about 80 percent of capacity, up from about 76 percent one year ago.
“We’re hearing sideways scrap for next month, but we do continue to hear a lot of reports suggesting a push for prices to rise by $5-$10/gt,” for July,” said one Midwest scrap trader said of late. Most reports of late, however, note a sideways sentiment as most likely ahead of the US July 4 holiday Friday.