US domestic flat steel prices were mixed for a second week amid continued low finished steel demand and sideways to lower December scrap prices, market insiders told SteelOrbis this week.
Scrap insiders said mills initially sought $10-$20/gt discounts for their meager December scrap requirements, though settled at sideways to $10/gt less in the Ohio Valley as suppliers held their ground amid continued scarce inventory. Chicago shredded scrap settled $10/gt less at $375-380/gt ($381-386/mt), while busheling was flat at $390-415/gt ($396-422/mt). Scrap pricing in the US Northeast settled just $2-$5/gt less on better export opportunity, insiders said, with HMS 1 scrap settled $2/gt less at $335-350/gt ($340-356/mt).
And, despite the mixed flat steel pricing, and flat to lower December scrap, mills continue to post pricing nearly 10 percent above spot prices reported this week. Nucor kept its Consumer Spot Price CSP at $750/nt FOB mill this week for a fifth week, while competitor Cleveland-Cliffs advanced its spot price by $50/gt to $800/gt FOB mill for February.
Some insiders say the difference between weekly posted mill pricing and spot market pricing is mostly a distraction and means little.
“To be honest, the Nucor CSP does not really mean much,” said one flat steel market insider ahead of the December 13 Cliffs HRC price hike announcement. “I really think that the current price (CSP) is the value that (Nucor) wants to achieve in January spot markets, so they’ll probably start to announce price hikes.”
In the flat steel markets, the SteelOrbis spot weekly average for HRC was noted $1.00/cwt., or $20/nt ($22/mt) less at $675/nt ($744/mt), delivered to customer, off from $680-710/nt ($750-783/mt), or $34.00-35.50/cwt., seven days ago. Market insiders report lead times for HRC from mills little changed at 3-6 weeks, indicating markets remain well supplied.
In other flat steel markets, CRC was reported $5/nt ($5/mt) higher in thin but improved trade at $905-915/nt ($997-1,009), or $45.25-45.75/cwt., delivered to customer, up from previous pricing reported flat for the two prior weeks at $900-$910/nt ($992-1,003/mt) or $45.00-45.50/cwt. With HRC down and CRC up, the spread between the two key steel grades is reported at $235/nt ($259/mt), or $11.75/cwt., up from $210/nt ($231.50/mt), or $10.50/cwt., one week ago.
Spot HDG is reported on average flat to week-ago levels at $865/nt ($954/mt), or $43.25/cwt delivered to customer, market insiders told SteelOrbis.
