SteelOrbis insiders report that US flat steel prices were steady to higher this week amid reports that July scrap could settle sideways to higher next month, even as domestic steel mills continue to raise prices in reaction to 50 percent tariffs that have significantly reduced competition from imports.
According to SteelOrbis contacts, the current 50 percent tariffs make domestic steel more attractive than imported steel from abroad, which has a 50 percent tariff attached. They say the lack of competition allows mills to raise prices.
As recently as June 17, Mount Airy, North Carolina-based Insteel Wire Products announced a month-on-month price increase. This follows late-May and early-June price increase announcements from Cleveland-Cliffs, Nucor, CMC, and DeAcero.
While some insiders claim that the domestic scrap supply is beginning to wane and that US East Coast exports could improve in July, media reports indicate that US domestic mills are currently operating at approximately 80 percent capacity, up from around 76 percent one year ago.
“We’re hearing sideways scrap for next month, but we do continue to hear a lot of reports suggesting a push for prices to rise by $5-10/gt,” for July,” said one Midwest scrap trader.
This week’s SteelOrbis spot HRC price average is $890/nt ($981/mt), up from the $870-$900/nt ($959-$992/mt) range or an average of $885/nt ($976/mt) one week earlier.
On the mill side, key US steelmaker Nucor kept its consumer spot price (CSP) for hot-rolled coil (HRC) steady for a second week at $900/nt ($992/mt). The CRU HRC price increased by $23/nt to $901/nt ($993/mt), or $45.05/cwt.
In other flat steel markets, the average spot price of CRC is reported to be $40/nt higher, at $1,060/nt ($1,168/mt) or $53.00/cwt., up from $1,020/nt ($1,124/mt) or $51.00/cwt. a week earlier. Due to the rising weekly values of HRC and CRC, the key price spread between the two steel grades is $170/nt ($187/mt), up from $135/nt ($149/mt) one week ago.
In the coated finished steel marketplace, the spot price of HDG base product, delivered, is assessed at $1,010/nt ($1,113/mt), or an average of $50.50/cwt. This is down from a reported range of $48-$55/cwt., or an average of $1,030/nt ($1,135/mt) or $51.50/cwt., two weeks earlier.