US domestic flat steel pricing was flat to down for a third week on limited new spot demand, while November scrap pricing appears to have settled sideways to October pricing, market insiders told SteelOrbis this week.
The market assessment for hot rolled coils was unchanged from the previous two weeks, when markets were steady, even as November scrap was talked sideways to down, especially in areas such as the US Southeast that saw prime grade scrap prices rise for October. Since that time, the November scrap call for monthly settlement has changed to one of sideways.
So far, few November scrap assessments on a $/ton basis are noted by SteelOrbis, aside from sideways assessments to established monthly price indices in the Chicago marketplace, therefore, more data will need be gathered early next week to arrive at more accurate monthly scrap settlements.
“There has been very little movement in the market this week. The hot rolled market remains flat,” said one US Gulf Coast-based flat steel market insider. “We did see a little bit of a demand flurry late last week, but that didn’t have any upward impact on pricing.”
Recently, SteelOrbis reported that owing to continued limited demand for finished flat steel products, spot transactions were limited to those aimed at meeting “contract minimums with mills,” therefore, pricing was expected to remain little changed with new activity muted.
The weekly SteelOrbis spot average for HRC remains unchanged for a third week at $660-680/nt ($728-750/mt), or $33.00-34.00/cwt. Lead times for HRC are reported last steady at 4-6 weeks, insiders said, indicating markets remain adequately supplied amid limited new spot market demand.
Even as spot markets remain flat, Nucor increased its weekly Consumer Spot Price by $10/nt ($11/mt) to $750/nt FOB mill ($904/mt), or $37.50/cwt., from $740/nt ($816/mt) or $37.00/cwt. Its CSI base price for California HRC also rose by $10/nt to $810/nt ($893/mt), or $40.50/cwt.
Insiders told SteelOrbis this week that the Nucor price, which now matches that of its competitor Cleveland Cliffs, is more a tool which aims at reducing current high price volatility in the marketplace, rather than being a true indicator of where spot transactions will most likely occur.
In other flat steel markets, CRC continued lower this week, with the weekly average declining another $15/nt ($16.53/mt) to an average $910-920/nt ($1,003-1,014/mt) FOB mill, or $45.50-46.00/cwt., off from $925-935/nt ($1,020-1,031/mt), or $46.25-46.75/cwt., one week ago. With HRC remaining flat while CRC continues lower, the spread between HRC and CRC is last assessed at $245/nt ($270/mt), or $12.25/cwt., weekly data shows.
In the HDG market, prices were assessed flat on the week at $870-880/nt ($959-970/mt) or $43.50-44.00/cwt. delivered, market insiders said.
