US flat steel prices continued to advance this week on a combination of uncertainty regarding recent tariff announcements by the Trump administration and rising scrap values for the month of March, market insiders told SteelOrbis this week.
Trump’s announcement of 25 percent across-the-board tariffs on all countries seeking to export steel products into the US is expected to reduce flat steel imports, insiders said, allowing domestic steel producers and distributors more levity to raise prices after a long period of sluggish market demand and limited price movement.
“The mills are very firm on their pricing,” said one East Coast flat steel insider to SteelOrbis regarding recent price gains. “Tariffs are the main reason for the recent price increases seen in flat steel.”
In weekly flat steel spot markets, the SteelOrbis weekly spot average for HRC spiked more than 13 percent to $850/nt ($937/mt) delivered to customer, up $100/nt ($110/mt) from the previous week’s $745-755/nt ($821-832/mt) reported trading range. Most insiders said HRC pricing could continue to advance until more clarity on tariffs and potential exemptions for different steel products is provided by the Trump administration ahead of the March 12 deadline.
In other flat steel markets, CRC is assessed on average at $975/nt ($1,075/mt), or $48.75/cwt., delivered to customer, up from last week’s $925-935/nt ($1,020-1,031/mt), or $46.25-46.75/cwt., reported trading range. At present, the current key trading spread between HRC and CRC declined to $6.25/cwt., or $125/nt ($138/mt) this week, off from $8.50/cwt., or $170/nt ($187/mt) seven days earlier.
Following on previous price increases, spot HDG continued higher this week, advancing once again to $1,000/nt ($1,102/mt), or $50.00/cwt, up from the prior week’s $870-880/nt ($959-970/mt), or $43.75/cwt., price range.
On the mill side, this week, steel maker Nucor once again increased its Consumer Spot Price (CSP) for hot-rolled coils for a fourth straight week, after a period of 11 straight weeks of stable pricing. The CSP rose by $30/nt ($33/mt) to $820/nt ($904/mt) FOB mill, up from last week’s $15/nt ($17/mt) gain to $790/nt ($881/mt).
Recent rising scrap prices also are supportive of finished steel, insiders say, with March busheling scrap in the Ohio Valley expected to advance about $40/gt ($41/mt) to about $490-515/gt ($498-523/mt). During the February scrap buy-cycle, busheling scrap rose on average $45/gt ($46/mt), to $455-480/gt ($462-488/mt) amid continued reports of low scrap inventories and continued transportation and supplier scrap processing equipment issues.
While Nucor’s HRC offer was up nearly 3.8 percent on the week, market insiders said buyers were unlikely to secure much supply at that posted price. “The word on the street is that some buyers are getting shut out at (Nucor’s) price,” an insider told SteelOrbis. “Other mills are offering supply at $850-900/nt ($937-992/mt), and people are paying it to ensure availability.”