US flat steel prices for hot-rolled coils continued higher for a second week as tariffs and their threat of use by the Trump administration was expected to further trim imports of finished steel, market insiders told SteelOrbis this week.
Market insiders said further reductions in imports of flat steel would allow domestic steel producers and distributors more levity to raise prices after a long period of sluggish market demand and limited price movement.
“I don’t expect much more downward movement in flat steel prices,” said one flat steel market insider. “Even the threat or the possibility of tariffs happening after 30 days will block the flow of imports.”
Expectations for higher near-term flat steel pricing were also reflected again in this week’s Consumer Spot Price (CSP) announcement from US steel maker Nucor, market insiders said. The weekly price letter to customers for hot-rolled coils announced another increase of $15/nt ($17/mt) to $775/nt ($855/mt) FOB mill. During the previous week of January 27, Nucor increased its CSP price by $10/nt ($11/mt) to $760/nt ($838/mt) or $38.00/cwt., following a period of 11 weeks of stable pricing.
In weekly flat steel markets, the SteelOrbis weekly spot average for HRC is assessed at $36.00-36.50/cwt. ($720-730/nt or $794-805/mt), on average $36.25 cwt., up from $34.75-35.25/cwt. ($695-705/nt or $766-777/mt) or an average $35.00/cwt., on a delivered to customer basis one week ago. Lead times for HRC from mills are last reported at 6-8 weeks, indicating markets remain reasonably supplied heading into the second week of February.
In other flat steel markets, CRC was reported on a delivered to customer basis at $915-925/nt ($1,008-1,020/mt), or on average $46.00/cwt., down from $925-945/nt ($1,020-1,042/mt), or on average $46.75/cwt., one week earlier.
At present, the current spread between HRC and CRC, the two key steel grades, declined to $195/nt ($235/nt), or $9.75/cwt., off from $235/nt ($259/mt), or $11.75/cwt., seven days ago.
Following previous increases, spot HDG was reported on a delivered to customer basis in limited trade at an average $43.00-43.50/nt, ($948-959/mt), or on average $43.50/cwt., off from $43.75/cwt. ($875/nt or 965/mt), a week earlier, market insiders told SteelOrbis.
On February 3, the Trump administration delayed the implementation of threatened new 25 percent import tariffs for 30 days on the US’s two largest trading partners, Canada and Mexico, after the countries’ leaders agreed to take concrete steps to address ongoing issues of immigration and the flow of fentanyl across the US border.
Additional tariffs on China of 10 percent went into effect on February 4, though Trump was expected to address the issue of fentanyl with the Chinese leader this week, after China threatened to reciprocate with 15 percent tariffs on US exports of coal natural gas and petroleum.