US domestic flat steel prices were mixed this week amid continued low finished steel demand thus far in the fourth quarter, even as the December scrap outlook was somewhat improved from a week earlier this week at sideways, from soft-sideways seven days ago, market insiders told SteelOrbis this week.
Scrap traders said recent cold and snow in the Upper Midwest and US Northeast has delayed December scrap shipments to both suppliers and mills, thus supporting a slightly higher expectation for next month’s scrap pricing, even as more storms prepared to roll through the regions, they said.
“My take on the December scrap market is that it will settle out sideways,” said one Midwest scrap supplier commenting on local flat steel pricing. “I don’t see things playing out really well on both the supply and (demand) side if markets go down,” he said. “We got hit with really bad weather this week in Northeast Ohio, Western Pennsylvania, and around Buffalo, NY, slowing inbound and outbound scrap shipments. Everyone’s inventory is extremely low at both the dealers and mills, plus we’re hearing that there’s a growing optimism out there that the incoming president is going to bring prosperity back to the American economy in 2025.”
In the flat steel markets, the SteelOrbis spot weekly average for HRC was noted at $680-710/nt ($750-783/mt), or $34.00-35.50/cwt., off from week-earlier levels on a delivered to customer basis at $680-700/nt ($750-772/mt), or $34.00-$35.00/cwt. Market insiders report lead times for HRC from mills steady at 4-6 weeks, indicating markets remain well supplied.
In other flat steel markets, CRC was flat for a second week at $900-$910/nt ($992-1,003/mt) or $45.00-45.50/cwt. With HRC up marginally and CRC flat, the spread between the two key steel grades is last reported at $210/nt ($231.50/mt), or $10.50/cwt., off from $215/nt ($237/mt), or $10.75/cwt. one week ago.
In the HDG market, prices were assessed about $5/nt less at $865/nt ($954/mt), or $43.25/cwt., off from $865-875/nt, ($954-965/nt), or $43.25-43.75 cwt. one week earlier.
On the mill side, Nucor’s Consumer Spot Price (CSP) for HRC was steady for a fourth week at $750/nt ($827/mt) or $37.50/cwt., however, no spot trades are yet reported near those price levels. Weekly data suggests this is the first time in more than three months the Nucor’s CSP price has remained unchanged.