US domestic flat steel pricing was reported steady to slightly lower this week as domestic finished steel demand remains limited, and December scrap is now seen steady to lower than November on scant demand expectations from mills, market insiders told SteelOrbis this week.
“While flat steel pricing is little changed from last week, we’re now hearing that December scrap is called sideways to soft-sideways,” said one US Midwest scrap market insider. “Mills’ order books remain weak, and demand hasn’t improved much at all for finished steel.”
In the flat steel markets, the SteelOrbis spot weekly average for HRC declined slightly this week with most transactions noted on a delivered to customer basis noted at $680-700/nt ($750-772/mt), or $34.00-$35.00/cwt., versus last week’s average at $670-772/nt ($739-772/mt), or $33.50-35.00/cwt. range. Market insiders last reported lead times for HRC from mills at 4-6 weeks, indicating markets remain well supplied with limited reports of new spot market requirements.
“Mills are booked through December and pricing remains pretty flat,” said one Midwest pipe trader that tracks the weekly price of HRC. “Overall, like pipe prices, pricing remains little changed in the flat steel markets as well.”
Some scrap traders say the recent trend of scrap pricing could ultimately result in another flat scrap month for December if recent history proves true, while others contend forcasts for snow storms in the US Midwest and Northeast could change the outlook for December scrap, and potentially flat steel pricing, in the near term, however, no new indications were available at press time.
“(Scrap) has been reported as sideways to down for the last three or four months, and has ended up being sideways every month, so at this time, I expect more of the same,” said another Midwest scrap insider that follows the price of HRC.
In other flat steel markets, CRC continued to move slightly lower once again this week, with the weekly average of trades on a delivered to customer basis declining to $900-$910/nt ($992-1,003/mt) or $45.00-45.50/cwt., off from $905-915/nt, ($997-1,008/mt), or $45.25-45.75/cwt., a week earlier. With HRC moving lower while CRC continues to dip, the spread between HRC and CRC is last assessed at $215/nt ($237/mt), or $10.75/cwt., off from $225/nt, ($248/mt), or $11.25/cwt., one week ago.
In the HDG market, prices were assessed steady on the week at $865-875/nt, ($870-880/nt), or $870-880/nt ($959-970/mt) or $43.50-44.00/cwt., on a delivered to customer basis, insiders said.
On the mill said, Nucor’s Consumer Spot Price (CSP) for HRC was steady for a third week at $750/nt ($827/mt) or $37.50/cwt., however, no spot trades are reported done near those price levels.