US sheet steel prices still falling as Nucor’s price increase fails to make an impact

Friday, 19 August 2022 19:42:51 (GMT+3)   |   San Diego
       

Spot market prices for US domestic hot and cold rolled coil have continued to soften in the past seven days. This is the 17th straight week that HRC and CRC prices have declined.

Current HRC prices are now trending at $37-$38 cwt. ($816-$838/mt or $740-$760/nt), FOB mill, against $39-$41 cwt. ($860-$904/mt or $780-$820/nt), FOB mill, a week ago. This is the lowest that US HRC prices have been since November 2020.

CRC prices, on the other hand, are now trending at $56.50-$57.50 cwt. ($1,246-$1,268/mt or $1,130-$1,150/nt), FOB mill, compared to $57-$59 cwt. ($1,257-$1,301/mt or $1,140-$1,180/nt), FOB mill, last week.

Lead times for HRC, which were previously trending at 3-4 weeks, have also decreased, with some buyers saying that some mills are delivering in just 14 days. CRC lead times, on the other hand, are mostly stable, at 6-7 weeks.

“I don’t think anyone took Nucor’s price increase seriously, and it looks like the market as whole didn’t take it seriously either,” a source said. “None of the other mills followed and the market fundamentals just don’t support a price increase at the moment.  Even now we’re already hearing that due to soft order books, the mills may try to take scrap prices down again next month.”

A second source agreed. “I think the problem now is that we’re starting to get some additional supply in the market, and there’s more steel coming out than what the market needs,” he said. “Yes, we have some [production] outages coming up next month, but if anything, I think that will help stabilize prices as opposed to pushing prices up.”


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