US flat steel prices were down again this week as low demand for finished steel products continued and lower July scrap prices were seen in the US Ohio Valley, market insiders told SteelOrbis this week.
Market insiders also noted that market activity remained muted as Hurricane Beryl battered the US Gulf Coast, disrupting power service to millions of customers in Houston and Dallas, Texas. The storm also disrupted transportation service as roads became flooded and downed trees prevented trucks from accessing steel delivery and pickup locations.
This week’s flat steel market assessment differs little from last week when flat steel prices were steady to down as low demand continued through the Fourth of July shortened week and most market insiders focused their energies on settling July buy-cycle scrap values across the Midwest and US Northeast.
“There’s not much new information out there to report this week because Hurricane Beryl has basically shut down the steel business in Texas,” said one SteelOrbis flat market insider.
The category 1 hurricane, which slammed into Texas on Monday, July 8, was forecast to move northeastward, bringing heavy rain and flooding to central Arkansas and the Lower Ohio Valley Tuesday night and into the Lower Great Lakes and New England on Wednesday, according to the National Weather Service.
On the pricing front, domestic HRC prices are discussed slightly lower on the week, with trading ranges discussed at $665-675/st ($745-756/mt), versus this past week’s $670-680/st ($739-750/mt). Lead times for delivery of spot HRC is last talked at 3-4 weeks, indicating markets are well supplied and mill inventories adequate heading through the second week of July, market insiders said.
In other flat steel grades, CRC is assessed $10/st ($11/mt) less on the week in thin trade in a $990-1,000/st ($1,091-1,102/mt) range, versus this past week’s $1,000-1,010/st ($1,102-1,113/mt) range. In coated products, HDG is discussed in continued light trade at $875-885/st ($965-976/mt), versus last week’s $895-905/st ($987-997/mt) trading range.
Lead times for CRC and HDG products continue at 4-7 weeks, insiders say, signaling markets remain well supplied with mill inventories mostly adequate to meet current requirements heading through the second full week of July and the July 9 culmination of the July scrap buy cycle.
On the domestic scrap front, Ohio Valley scrap generally settled sideways to $20/gt ($20/mt) less than June settles. Ohio Valley shredded scrap settled $10/gt ($10/mt) less a $380/gt ($386/mt). Busheling lost $20/gt ($20/mt) to settle at $355-375/gt ($361-381/mt), scrap dealers told SteelOrbis.
On the production side, steelmaker Nucor kept its Consumer Spot Price (CSP), the price it charges for hot rolled coils across all of its producing mills, steady for a second week at $670/st ($739/mt).
Recent Nucor price declines continue a pattern established in early April, when the steel maker announced the release of its CSP. Since the initial CSP release on April 8, the weekly spot price offer for hot-rolled coils has declined 19.3 percent from an initial offer of $830/st ($915/mt).
