US flat steel pricing was slightly lower this week, giving back previous minimal weekly gains, as domestic markets digested recent trade policy initiatives between Asia and the US, even as domestic flat steel demand remains unimpressive due to ongoing economic malaise and continuing steel import tariffs, market insiders told SteelOrbis.
Insiders said recent trade policy agreements between US President Trump and Chinese President Xi Jinping are seen by many as only temporary “stop-gap” measures, reducing heightened trade tensions and lowering tariffs by 10 percent, though, doing little to curb ongoing Chinese steel overproduction issues that continue to plague global steel supply chains and markets.
The weekly SteelOrbis HRC price average gave back week-ago $5/nt gains to settle at $815/nt ($898/mt), or $40.75/cwt., off from on average $820/nt ($904/mt) or $41.00/cwt., one week earlier. SteelOrbis data shows HRC prices have increased about 2 percent since bottoming during the week of Sept. 22 at $800/nt ($882/mt), or $40.00/cwt.
While US physical markets remain mostly flat, steel futures on the Chicago Mercantile Exchange continue to rally, insiders say, as many turn to hedging risk with futures contracts versus holding what some see as more risky physical steel, as tariffs continue to muddy the global steel trading waters. November hot-rolled coil futures that traded Oct. 31 at $852/nt ($939/mt) or $42.60/cwt. up from $843/nt ($929/mt), or $42.50/cwt., a week earlier, for greater than one percent weekly gain. December HRC futures that traded Oct. 31 at $886/nt ($977/mt), or $44.30/cwt., up from $862/nt ($950/mt), or $44.10/cwt., a week earlier, gained nearly three percent on the week.
Insiders also said physical flat steel markets remain thinly traded as a continued sideways November scrap outlook -though somewhat more bullish than lower October pricing- isn’t expected to offer much in the way of spot price support for finished steel.
In other flat steel markets, following an earlier weekly flat pricing close, cold rolled coil average prices finished the week down $5/nt at $1,010/nt ($1,113/mt), or $50.50/cwt., off from $1,015/nt ($1,119/mt or $50.75/cwt., one week earlier. Given a slight decline in HRC prices and weekly dip in CRC values, the current spread between HRC and CRC steel grades stands unchanged at $195/nt ($215/mt), or $9.75/cwt.
In the coated steel markets, market insiders caution that spot pricing could be set for a significant price increase soon, following recent reports from the annual Metalcon trade conference finding seller offers for G-90 coated steel product at $1,000-1,400/nt ($1,102-.1,543/mt).
“I’m not used to these kind of prices,” remarked one Midwest steel fabricator that uses coated products to produce fabricated steel beams. “In reaction to these kind of numbers I’m hearing, I’m looking at secondary product that is offered at around 38 cents per pound ($760/nt or $838/mt).”
Despite weekly claims of potential short-term price increases soon, the SteelOrbis hot-dipped galvanized steel average price dipped $2/nt on the week to $898/nt ($990/mt), or $44.90/cwt.