US flat steel pricing was mostly steady this week, even as January scrap prices settled sideways to higher, market insiders told SteelOrbis this week.
Recent cold weather throughout the US Midwest, Northeast, South and Southeast has caused January scrap pricing to settle sideways to $20/gt higher. Most scrap contacts polled on January 17 told SteelOrbis they expect the same weather conditions next month could 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 move higher.”
“Prices for hot dipped galvanized are a little firmer than last week,” the flat steel insider added. “We’re hearing trades getting done regularly at 42.00/cwt.”
On the mill side, this week, Nucor kept its Consumer Spot Price (CSP) for hot-rolled coils steady for a tenth week at $750/nt FOB mill ($832/mt), or $37.50/cwt. Nucor’s nearest competitor Cleveland Cliffs announced last month that it would advance its spot price by $50/gt ($55/mt) to $800/gt ($832/mt), or $40.00/cwt., FOB mill for February HRC requirements. Most insiders expect Nucor to raise its CSP to be closer to Cliffs as February approaches.
Following recent HRC price advances prior to the holidays, the Nucor posted price still remains more than 7 percent higher than current spot market pricing.
In weekly flat steel markets, the SteelOrbis weekly spot average for HRC remains steady at $34.00-35.00/cwt., or on average $690/nt ($761/mt) delivered to customer. Market insiders report lead times for HRC from mills little changed at 3-6 weeks, indicating markets remain well supplied heading into the third week of January.
In other flat steel markets, CRC was reported flat on average $920-930/nt ($1,014-1,025/mt), or $46.00-46.50/cwt. The current spread between HRC and CRC, the two key steel grades, remains unchanged at $235/nt ($259/mt), or $11.75/cwt.
Spot HDG is reported slightly higher in continued thin trade at $42.00/cwt., or 840/nt (926/mt), up from earlier trades seven days ago at $41.00-42.00/cwt. ($820-840/nt or $904-926/mt) delivered to customer, market insiders told SteelOrbis.