US flat steel pricing continued mixed this week amid lethargic trade following the July 4 holiday, fueled by a sideways to June scrap settle for July, and continued uncertainty regarding the status of ongoing trade tariff negotiations concerning US steel imports, market insiders told SteelOrbis.
On July 7, US President Trump extended the 90-day tariff implementation pause period for US trading partners from an initial cut off date of July 9 to Aug. 1. As it stands, Trump sent letters to more than 20 countries, advising them that tariffs for each would range between 25-40 percent starting Aug. 1 if not re-negotiated sooner, with no additional pauses likely.
“Demand remains pretty weak,” remarked one flat steel trader to SteelOrbis. “Not much is currently driving the markets, as most people are still trying to figure out tariffs.” “Deals on HRC are being made in the mid-$800s/nt, especially for excess (capacity),” said another flat steel insider. “Markets are slow, slow, slow,” said still another flat trader.
While assessing spot markets was challenging amid the sparse trade reported following a pre-July 4 holiday rush to get trade books in order, insiders hinted to SteelOrbis that importers facing 50 percent tariffs at US docks could be starting to offer discounts on HRC and other available finished steel material in order to generate cash flow and better compete with lower-priced domestic material.
In the hot-rolled coil spot markets, some traders quoted spot averages in extremely thin trade action at $820-840/nt, ($905-926/mt), or on average $41.50/cwt., while others called the spot market at a more modest $865/nt level. In the end, the SteelOrbis weekly HRC spot average is assessed $40/nt less at $850/nt, ($937/mt), or $42.50/cwt., off from a $890/nt ($981/mt), or a $44.50/cwt., assessment one week earlier.
On the mill side, key US steel maker Nucor kept its Consumer Spot Price (CSP) for HRC steady for a second week at $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 index was reported $15/nt less at $886/nt ($977/mt), or $44.30/cwt., off from a second straight weekly posting of $901/nt ($993/mt) or $45.05/cwt.
In the cold-rolled market, spot CRC is reported on average flat from one week earlier at $1,050/nt, ($1,157/mt) though still off from three weeks earlier when prices were assessed $40/nt higher at $1,060/nt ($1,168/mt), or $53.00/cwt. Given sharply lower HRC pricing and flat CRC weekly values, the weekly key price spread between the two steel grades stands at $200/nt ($220/mt), or $10/cwt., off from $160/nt ($176/mt), or $8/cwt., one week earlier.
In the coated finished steel marketplace, spot HDG base product on a delivered basis is assessed $20/nt higher at $1,000-1,040/nt ($1,102-1,146/mt), or on average $1,020/nt, up from $1,000/nt ($1,102/mt), or $50/cwt., a week earlier.
On July 10, US President Trump announced that tariffs on Canada, the US’s largest steel supplier, would be assessed at 35 percent. In 2024, Canada exported about 23 percent of US total steel imports, followed by Brazil and Mexico. Current Mexico tariffs stand at 50 percent pending further negotiations, while Brazil was assessed earlier this week at 50 percent starting Aug. 1.