US flat steel prices continued their recent decline this week even as new reciprocal tariffs, delayed by US President Trump one week until Aug. 7 went into effect. Market insiders told SteelOrbis at this stage, most market participants have come to terms with reciprocal tariffs, resulting in a reduced level of uncertainty.
And while there is lower uncertainty regarding reciprocal tariffs, no serious concrete action has yet to be taken regarding Section 232 steel and aluminum tariffs, which remain doubled since June 4 at 50 percent. Since June, only the UK has negotiated these tariff levels down to a 25 percent. The US’ three major steel trading partners, Mexico, Canada, and Brazil remain at 50 percent. The three countries accounted for about 25 percent of the steel imported into the US in 2024, according to media reports.
Recent flat steel price declines also follows the release of less favorable US economic data, indicating that US jobs growth was far less than previously reported, while inflation continues to trickle higher. Most economic experts now predict there’s a 70 percent likelihood that US Federal Reserve will cut key overnight bank lending rates at the next Federal Open Market Committee (FOMC) meeting September 16-17. Despite repeated requests from the US president for a rate cut, the key bank lending rate has remained steady since December 2024 at 4.25-4.50 percent.
This week, the SteelOrbis spot average price for hot-rolled coils is assessed $30/nt or nearly 3.5 percent lower on the week at $840/nt ($926/mt), or $42.00/cwt., off from $870/nt ($959/mt), or $43.50/cwt., one week prior. SteelOrbis daily pricing data reveals this week’s HRC assessment represents the lowest price on record since mid-June.
In other flat steel markets, spot CRC is reported lower as well, with the majority of spot price transactions heard about $10/nt less at $1,065/nt ($1,174/mt), or $53.25/cwt., off from $1,075/nt, ($1,185/mt), or $53.75/cwt. Given lower HRC pricing and lower CRC weekly values, the weekly key price spread between the two steel grades increased $20/nt to $225/nt or $11.25/cwt.
In the coated steel markets, spot HDG grade steel declined on average another $10/nt to on average $995/nt ($1,097/mt), or $49.75/cwt., off from $1,005/nt ($1,107/mt) or $50.25/cwt., one week ago.
On the mill side, key US steel maker Nucor reduced its Consumer Spot Price (CSP) for HRC to $890/nt ($981/mt), or $44.50/cwt., off from $900/nt ($992/mt) or $45.00/cwt., a price that had remained stable for the two previous two weeks.
