US domestic flat steel prices continued their recent price uptrend this week amid reports of solid domestic flat steel demand, continued strong US scrap pricing, as well as low levels of steel imports, market insiders told SteelOrbis this week.
With the war in the Middle East continuing to rage for a fourth week, the expected start of spring maintenance operations at domestic mills was likely to curtail available flat steel production at a time when finished steel imports remain slashed as a result of continued 50 percent steel import tariffs. Recent sharp increases in freight and energy costs associated with the Middle East war were also expected to keep competition from imports low, allowing US mills more levity to raise prices.
“Projects are still continuing to happen, and people are still buying lots of flat steel,” said one US Midwest flat steel insider. “I’m hearing more and more reports of crazy high steel prices, so as a steel products producer, my focus has been to introduce efficiencies to reduce my unit cost.”
In the weekly hot-rolled coil markets, the weekly SteelOrbis flat steel price finished the week at $1,025/nt ($1,130/mt), or $51.25/cwt., on an FOB basis, up $12/nt from $1,013/nt ($1,117/mt), or $50.65/cwt., one week ago. With the spring construction season soon to commence, lead times for new HRC production were last discussed at 6-10 weeks, up from 3-5 weeks in earlier reports, insiders said.
“The slow pricing grind north continues,” said another flat steel insider to SteelOrbis, regarding this week’s continued gains seen in flat steel markets. “We’re seeing a continuation of a slow grinding force that has had momentum for a while. On December 31, HRC was at $45.50/cwt., ($910/nt or $1,003/mt) FOB, so its up just under $6/nt for the year, or about two bucks a month. In fact, on October 1, HRC was at $40.20/cwt. ($804/nt or $886/mt) FOB, so pricing went up about $5 bucks over that period as well.”
This week, Charlotte, North Carolina-based Nucor continued to raise its Consumer Spot Price (CSP) for flat-rolled coils for a tenth time in 13 weeks, by another $10/nt on an FOB mill basis to $1,025/nt, ($1,130/mt), or $51.25/cwt., up from $1,015/nt, ($1,119/mt), or $50.75/cwt., one week ago. Since the end of October, when CSP prices started a steady advance following an eight-week period of stability at $875/nt, the Nucor CSP has increased more than 17 percent. Nucor‘s California Steel Industries (CSI) price also rose another $10/nt on the week to $1,075/nt ($1,185/mt), or $53.75/cwt., FOB mill, up from $1,065/nt ($1,174/mt), or $53.25/cwt., one week ago.
In the cold-rolled steel markets, following previous weekly price dip of $4/nt, spot pricing was quoted at on average $1,150/nt ($1,268/mt), or $57.50/cwt., on an FOB basis, up from $1,146/nt, ($1,1265/mt), or $57.30/cwt., one week earlier. Based on a $12/nt increase in HRC prices and a smaller $4/nt rise in CRC values, the current spread between the two key steel grades stands at $125/nt, or $6.25/cwt., off from $130/nt, or $6.65/cwt., one week earlier.
In the hot-dipped galvanized (HDG) spot market, the SteelOrbis HDG average price finished the week at $1,135/nt ($1,251/mt), or $56.75/cwt., on an FOB basis, up on average $6/nt from $1,129/nt, ($1,245/mt), or $56.45/cwt., reported one week ago.
Flat steel insiders said solid US scrap prices continue to be supportive for all steel products, including flat steel. At last report, April scrap is seen sideways for prime grades to potentially down $10-20/gt for cut grades on a delivered to mill basis, though late-week reports of higher export pricing from US East Coast scrap insiders indicate the current April expectation could be subject to change as early supply negotiations begin next week, insiders said.
Based on a sideways to down expectation for April scrap, US Midwest local busheling and shredded scrap grades could settle on a delivered to mill basis near $445-455/gt ($452-462/mt), and $445-450/gt ($452-457/mt), respectively. P&S and HMS scrap might settle on a delivered to mill basis $10-20/gt less at $406-416/gt ($412-423/mt) and $370-390/gt ($376-396/mt), respectively.
