Sources close to SteelOrbis have confirmed that US flat rolled steel prices have continued to tick down since our last report a week ago.
As of today, US HRC prices are trending at $36.50-$38.50 cwt. ($805-$850/mt or $730-$770/nt), FOB mill, against $40-$41 cwt. ($882-$904/mt or $800-$820/nt), FOB mill, a week ago.
In terms of HDG and CRC prices, those have also softened week-over-week, and are now trending at $52-$55 cwt. ($1,146-$1,213/mt or $1,040-$1,100/nt), FOB mill, against $54-$55 cwt. ($1,191-$1,213/mt or $1,080-$1,100/nt), FOB mill, a week ago.
This puts the approximate spread between HRC and CRC at roughly $15.50 cwt. ($342/mt or $310/nt), FOB mill. One source said that with the spread between these products being as wide as it is, he believes that “either CRC needs to come down or HRC is going to need to come back up.”
Another source pointed out that last week’s price increase announcements from Nucor and Cleveland Cliffs did little, if anything, in terms of establishing HRC floor pricing.
On Thursday of last week, Nucor announced a new minimum HRC base of $41.25 cwt. ($909/mt or $825/nt), whereas Cliff’s announced a new minimum base of $42 cwt. ($926/mt or $840/nt), both FOB mill.
“As a lot of us suspected, that price increase from last week essentially fell flat on its face,” a second source said, adding that he thinks that mills trying to push HRC prices up, while at the same time, taking prime grade scrap down by $60/gt during this month’s buy cycle “was a tall order.”
Demand continues to be described as OK, yet unexciting. Sources also believe that the market is likely to bottom by the end of the month.