US hot-rolled coils pricing continued higher again this week, approaching two-year highs, as a result of solid domestic demand, reduced tariff-inspired imports and rising February scrap prices, market insiders told SteelOrbis.
According to media reports, HRC pricing in excess of $960/nt ($1,058/mt) are the highest on record since unexpected steel tariff announcements boosted pricing sharply during the first week of April 2025. On a longer-term basis however, HRC pricing hasn’t seen these levels on a consistent basis since early-2024, SteelOrbis data shows.
“Everything is up this week, with HRC leading the way,” remarked one long steel market insider. “Only one week in April 2025 saw higher pricing, so in essence HRC has reached its’ highest mark in two years as pricing was in the low-to-mid $50s/cwt., to start 2024.”
The combination of reduced finished steel imports as a result of renewed Section 232 steel tariffs earlier this year, steadily rising US steel plant capacity utilization rates, along with steady increases in scrap pricing which continues to boost mills’ steel production costs, continue to be cited as key reasons for continued support in local flat steel markets, insider said.
The weekly SteelOrbis HRC spot price average price closed the week up another $10/nt to $960/nt ($1,058/mt), or $48.00/cwt., following last week’s $12/nt rise to $950/nt ($1,050/mt), or $47.00/cwt. Since the start of the new year, spot HRC pricing is up nearly 5.5 percent, while one year SteelOrbis data comparisons show pricing up more than 37 percent from on average $700/nt ($772/mt), or $35.00/cwt.
At last report, US Midwest domestic flat steel benchmark busheling scrap for February delivery is discussed on average $30/gt higher versus January settles at $445-455/gt ($452-462/mt). Scrap traders cite minimal inventory on hand, solid demand from mills, and recent weather-related production issues as reasoning behind recent scrap price increases.
Insiders told SteelOrbis that recent weather-related supply disruptions to transportation networks could also cause finished steel and scrap prices to continue supported, even though demand is characterized as nominal or “steady at best.”
“While my area missed the snow and ice, other parts of the the US got hit,” remarked one US Midwest flat steel insider. “ I am hearing shredder [scrap] flows are off and a lot of folks are going to the ground daily and will still owe scrap.” He continued, “I believe obsolete grades like P&S and HMS [scrap] will drag the market up a strong $20/gt as I am getting calls for HMS and PS for delivery this week. It seems mills let inventory get too low at the end of the year and are scrambling to catch up. We are hearing order books are ok, not great, although I hear hot-rolled coils are now about at a two-year high.”
Some Detroit area scrap suppliers told SteelOrbis they expect monthly scrap to trade as high as $40/gt higher than equivalent January settles, especially given recent weather-related issues .
In the cold roll markets, trading remained thin with prices flat versus week-ago levels at $1,100/nt ($1,213/mt) or $55.00/cwt. Insiders told SteelOrbis the combination of rising steel production costs as a result of continued strength in local scrap markets with limited levels of steel imports were prompting US mills to increase weekly production levels to keep up with local demand.
Based on a $10/nt increase for HRC pricing and a flat CRC weekly assessment, the current spread between the two key steel grades continued to slip, with levels seen this week at a recent low of $140/nt, or $7.00/cwt., off from $150/nt, or $7.50/cwt., seven days ago.
In the coated steel markets, the SteelOrbis hot-dipped galvanized base supply prices are also assessed steady for the week at on average $1,060/nt ($1,168/,mt), or $53.00/cwt., following last week’s $20/nt increase from a reported $1,040/nt ($1,146/mt), or $52.00/cwt., seen two weeks earlier.
This week, even as spot flat steel trade remained limited as market participants waited on a developing scrap consensus and the affects of a massive winter storm, Charlotte, North Carolina-based Nucor raised its Consumer Spot Price (CSP) for flat-rolled coils for a second time four weeks by another $5/nt to $965/nt ($1,064/mt), or $48.25/cwt., up from $960/nt ($1,058/mt), or $48.00/cwt., one week earlier. Since the end of October, when CSP prices started their recent advance following an eight-week period of stability at $875/nt, the Nucor CSP has increased by more than 10 percent.