US flat steel pricing was mixed this week, even as market activity remained limited ahead of expected additional tariffs on imported steel, market insiders told SteelOrbis this week. And while trading remains scant, many contacts said they expect recent softness for hot rolled coils to continue ahead of expected tariff announcements from the Trump administration.
“Most people are waiting until February 1,” one flat steel market insider said when asked about the extent of weekly trade, pricing, and impending tariffs, he characterized as “mostly flat.” “As a result of fears about new tariffs, we’re seeing basically no imports,” he said.
At this week’s annual SteelOrbis RWR conference in Las Vegas, long steel importers also expressed what they said was growing industry concern over tariffs, warning that few long steel importers were willing to commit to new supply arrangements near term, for fear of being slapped with tariffs as cargoes arrive at US ports.
This week’s assessment differs from that of the previous week, when flat steel pricing was mostly reported steady as January scrap prices settled sideways to higher. This week, February scrap is seen at least $20/gt higher across all Midwest and Southeast grades, market insiders told SteelOrbis.
Continued cold weather throughout the US Midwest, Northeast, South and Southeast caused January scrap pricing to settle sideways to $20/gt higher. Most scrap contacts polled seven days ago told SteelOrbis they expect the same weather conditions next month would cause February scrap prices to settle sideways to higher.
“I think (rising scrap values) will be a really good excuse to keep prices high by flat mills,” said one flat steel market insider. “Couple that with the effect of Trump coming in as president, with ongoing anti-dumping cases for coated steel, and we could see prices move steadily and slowly higher.”
In weekly flat steel markets, the SteelOrbis weekly spot average for HRC was $34.00-34.50/cwt. ($680-690/nt or $750-761/mt) on a delivered to customer basis, $0.25/cwt. less at an average $34.25/cwt. ($685/nt or $755/mt), off from $34.00-35.00/cwt., or on average $690/nt ($761/mt) seven days ago. Market insiders still report lead times for HRC from mills stable at 3-6 weeks, indicating markets remain well supplied heading into the third week of January.
In other flat steel markets, CRC was reported delivered to customer at $900-950/nt ($992-1,047/mt), or on average $46.25/cwt., up from $900-$910/nt ($992-1,003/mt), on average $45.00-45.50/cwt., seven days earlier. The current spread between HRC and CRC, the two key steel grades, increased to $240/nt ($265/mt), or $12.00/cwt., up from $235/nt ($259/mt), or $11.75/cwt., seven days ago.
Spot HDG is reported higher in continued thin trade at an average $43.00/cwt. ($860/nt or 948/mt), up from $42.25/cwt. ($845/nt or $932/mt) a week earlier., on a delivered to customer basis, market insiders told SteelOrbis.