US flat steel prices settled mixed this week with hot rolled coils (HRC) moving slightly higher on reports of improved local spot market demand, while cold rolled and galvanized grades settled still lower, market insiders told SteelOrbis.
“Flat steel prices are all over the place,” remarked one Midwest flat steel buyer. “Some mills are offering deals, some are not.”
Another Midwest steel broker said that reports continue to circulate in trading circles that weekly HRC prices have risen as a result of improved demand, as buyers faced the prospect of declining prices and took mill contracts to their minimum levels. This has prompted additional local spot market sales after inventory was deemed too low.
“Buyers ordered their (mill) contracts to minimums to limit their exposure to falling prices,” the finished steel broker told SteelOrbis. “And in doing this, with business being fairly steady, this has created holes in their inventory, especially since I’m hearing that (lead times) for some mills have been extended to (six weeks) July.” He continued, “So, the spot market has been very hot for us, as we’ve seen record orders so far this month.”
Last week, market insiders claimed many mills were offering lead times of as little as three weeks in order to sell their products while prices were falling.
This week’s SteelOrbis spot HRC quotes ranged $800-890/nt ($882-891/mt), or $40.00-44.50/cwt., with the weekly average up $12.50/nt to $847.50/nt ($934/mt) or about $42.00/cwt. Given this week’s price increase, SteelOrbis weekly pricing data shows spot HRC pricing has fallen nearly 11 percent or $102.50/nt ($113/mt), from a yearly HRC spot price high of $950/nt ($1,047/mt) logged during the week of March 17.
Despite falling local spot HRC pricing, Nucor’s posted Consumer Spot Price (CSP) fell by a further $20/nt to $880/nt ($970/mt), or $44.00/cwt. The California Steel Industries (CSI) index also declined $20/nt to $940/nt ($1,036/mt), or $47.00/cwt.
“Nucor dropping their spot price by $20/nt this week says it all about current demand levels,” quipped another Midwest flat steel contact.
In the cold rolled markets, following previous steady pricing, local CRC spot supply is offered at $50.00-55.00/cwt., or $1,000-1,100/nt ($1,102-1,213/mt), or on average $1,050/nt, off from $1,120-1,130/nt ($1,235-1,246/mt), or on average $1,125/nt one week ago. Given falling CRC pricing and slight increases in HRC price levels, the weekly key price spread between the two steel grades fell $87.50/nt to $202.50/nt ($223/mt), or $10.13/cwt.
In the coated finished steel marketplace, spot HDG base product is assessed in a wide $900-1,020/nt range, with most trades reported on average $960/nt ($1,058/mt) or $48/cwt., off from $960-$1,000/nt ($1,058-1,102/mt) on a delivered basis, or on average $980/nt one week ago.
