US flat steel pricing was steady to a bit lower this week as spot market demand remains muted following the Christmas and New Year holidays, flat steel market insiders told SteelOrbis this week. Insiders say flat steel prices could be pulled higher in the near term by advancing January scrap values.
This week’s assessments vary from the last weekly report when domestic mills were reported to be raising prices slightly as insiders clamored to cover remaining December spot flat steel requirements ahead of holiday season industry shutdowns and vacations.
This week’s steady to lower flat steel pricing occurred even as January scrap values are noted $20-30/gt higher on a delivered basis during the monthly scrap buy-cycle as extreme cold weather and snow combines with dwindling inventories in the Midwest, Southeast and South. The combination is said to be making prompt scrap deliveries to mills more difficult, insiders told SteelOrbis this week.
Also of note, next week’s expected January 15, dockworkers strike at multiple East Coast and Gulf Coast ports has been averted following a tentative agreement on outstanding issues for a new six-year master labor contract. An extended strike was diverted in early October after union workers were granted concessions for a 62 percent wage increase over the next six years.
On the mill side, this week, Nucor kept its Consumer Spot Price (CSP) for hot-rolled coils steady for a ninth week at $750/nt FOB mill ($832/mt), or $37.50/cwt. Nucor’s nearest competitor Cleveland Cliffs announced last month that it would advance its spot price by $50/gt ($55/mt) to $800/gt ($832/mt), or $40.00/cwt., FOB mill for February HRC requirements. Most insiders expect Nucor to raise its CSP to be closer to Cliffs as February approaches. Even considering recent HRC price advances prior to the holidays, the Nucor posted price remains more than seven percent higher than current spot market pricing.
In weekly flat steel markets, the SteelOrbis weekly spot average for HRC remains at $34.00-35.00/cwt., or on average $690/nt ($761/mt) delivered to customer. Market insiders report lead times for HRC from mills little changed at 3-6 weeks, indicating markets remain well supplied heading into the second week of January.
In other flat steel markets, CRC was reported flat on average $920-930/nt ($1,014-1,025/mt), or $46.00-46.50/cwt. The current spread between HRC and CRC, the two key steel grades, remains unchanged at $235/nt ($259/mt), or $11.75/cwt.
Spot HDG is reported in very light trade slightly less at $41.00-42.00/cwt., or $820-840/nt ($904-926/mt), off from earlier trades at $42.75-43.25/cwt., or $855-865/nt ($943-954/mt) delivered to customer, market insiders told SteelOrbis.