US hot-rolled coil prices continued their upward creep this week fueled by continued reductions in tariff-related flat steel imports, insiders told SteelOrbis, even as raw material scrap prices for October delivery were seen settling down for a second month.
The weekly SteelOrbis HRC price average rose another $2.50/nt to on average $810/nt ($893/mt), or $40.50/cwt., off from an average $807.50/nt ($890/mt), or $40.375/cwt., one week earlier. SteelOrbis data shows HRC prices have increased 1.25 percent since bottoming during the week of Sept. 22 at $800/nt ($882/mt), or $40.00/cwt.
On the raw materials front, October US Ohio Valley prime busheling scrap during this week’s October buy-cycle negotiations was seen settling on average $20/gt less, off from initial discussions at $20-30/gt lower. October shredded scrap, which posted a flat posting for September, was expected to settle $10/gt less, off from $10-20/gt estimates earlier in monthly supply negotiations. Obsolete grades such as HMS I/II and P&S scrap which were initially seen sideways to September values, were expected to settle $10/gt less as forward scrap export sentiment improved, overseas scrap insiders told SteelOrbis.
On the longer term supply side, insiders add that it is hoped that this week’s meeting between US President Trump and Canadian Prime Minister Carney will reduce ongoing 50 percent steel tariffs and allow more Canadian finished steel to flow into US markets, easing supply concerns and helping to reverse recent price increases announced by US mills.
This week, Nucor’s Consumer Spot Price (CSP) -the posted price it charges for hot-rolled coils across all of its mills- was reported steady for a sixth week, the mill said in a letter to its customers. Nucor’s CSP was reported at $875/nt ($965/mt), or $43.75/cwt., following a previous $10/nt increase from $865/nt ($954/mt) or $43.25/cwt., the week of Aug. 25. Nucor’s California Steel Industries (CSI) base price was also steady again at $935/nt ($1,031/mt), or $46.75/cwt., following its previous $10/nt increase from $925//nt ($1,020/mt), or $46.25/cwt., during the same week.
As previously reported by SteelOrbis, market insiders said the announcement from key Canadian flat steel producer Algoma Steel may have contributed to the recent rebound in US HRC pricing. Strong futures prices for HRC, fueled by growing uncertainty over trade tariffs’ affect on domestic and global supply also are contributing to recent HRC price stability, they said. At last report, HRC futures for October delivery traded at $815/gt ($898/mt), up from $806/nt ($888/mt) one week earlier as futures traders continue to hedge against growing tariff and global economic uncertainty.
In other flat steel markets, following an earlier weekly spot CRC rebound of $5/nt to on average $1,015/nt ($1,119/mt), or $50.75/cwt., CRC pricing was reported another $10/nt less this week on average $995/nt ($1,097/mt), or $49.75/cwt., off from $1,005/nt ($1,107/mt), or $50.25/cwt.. a week earlier. Given a slight increase in HRC values and a further dip in CRC values, the current spread between HRC and CRC stands at $185/nt, ($204/mt), or $9.25/cwt., off from $197.50/nt ($218/mt), or $9.875/cwt., one week earlier.
In the coated steel markets, following an earlier $5/nt weekly decline, spot HDG grade steel dipped another $2/nt to on average $908/nt ($1,001/mt), or $45.40/cwt., off from $910/nt ($1,003/mt), or $45.50/cwt., one week earlier, market insiders told SteelOrbis.
On October 1, Canadian steelmaker Algoma Steel Group Inc., announced it had received a major financial boost with C$500 million in liquidity support from the Canadian federal and Ontario provincial governments. This funding aimed to give Algoma the flexibility it needs to withstand US trade measures and accelerate its decarbonizing and modernization plans.
Market insiders say the 50 percent import tariffs on Canadian and Mexican steel production has in effect locked imports from the US’ two key suppliers out of the market, stressing domestic producers to increase plant capacity utilization rates at a time when most mills are headlong into yearly maintenance activities. Reports from mills of supply allocations continued this week.