Sources close to SteelOrbis have indicated that while flat rolled steel prices have inched up since our last report a week ago, HRC prices are still below mills’ desired levels.
In late-June, US Steel, Nucor, AM Calvert, and Cleveland Cliffs all announced plans to raise US HRC prices effective with all new orders. US Steel did not establish a new minimum HRC base price (and instead, said they’d be implementing a $2.50 cwt. ($55/mt or $50/nt) effective with all new orders), Nucor announced HRC base pricing at $45 cwt. ($992/mt or $900/nt), whereas AM Calvert and Cleveland Cliffs came out at $47.50 cwt. ($1,047/mt or $950/nt).
At that time, HRC was being heard at approximately $39-$42 cwt. ($860-$926/mt or $780-$840/nt) FOB mill, against $43-$46 cwt. ($948-$1,014/mt or $860-$920/nt), FOB mill, whereas cold rolled and Galvanized prices were both trending at approximately $48-$52 cwt. ($1,058-$1,146/mt or $960-$1,040/nt) FOB mill.
Today, sources have confirmed that HRC is now being heard at $40-$44 cwt. ($882-$970/mt or $800-$880/nt), CRC is being heard at $51-$56 cwt. ($1,124-$1,235/mt or $1,020-$1,120/nt), and HDG coil is trending at $53-$56 cwt. ($1,169-$1,235/mt or $1,060-$1,120/nt), all FOB mill.
“With the (outage at Steel Dynamics Sinton, Texas flat rolled mill), prices aren’t coming down, but the caster at Sinton was only operating at half speed anyway so I don’t know how big of a deal this truly is to the market,” a source said. “Lead times are still short, but there’s no longer pricing pressure to the downside.”
Current HRC lead times are trending at 4-5 weeks, CRC lead times are trending at 7-8 weeks, and HDG lead times are being heard at roughly 6-8 weeks, depending on the mill.
Other sources have noted that while the price range for all three products is still “pretty substantial,” depending on volume, that some HDG transactions are still taking place slightly below $50 cwt. ($1,102/mt or $1,000/nt).
And while the outage at Sinton seems to have removed downward pricing pressure from the market, imports are still being offered at prices that “are quite competitive.”
“We know of offers out of Korea and Europe at roughly $35-$36 cwt. ($772-$794/mt or $700-$720/nt), DDP loaded truck in US Gulf coast ports,” a source said, “on a futures basis.”