US flat steel pricing remained mixed this week even as as global finished steel pricing posted the largest weekly gains in nearly a year, on renewed buying interest as a result of stimulus programs announced in China late last week, market insiders told SteelOrbis this week.
And while global pricing continues to climb, many US market participants remain unconvinced that higher global finished steel prices abroad will “spill over” into US markets as US demand for finished steel remains unremarkable and October scrap is now seen steady to potentially lower.
Market insiders report taking a “wait and see” attitude regarding new spot purchases until they know whether recent global price spikes will stick once Asian trading resumes following the Golden Week holiday on October 7.
Most don’t expect sideways to weak sideways local scrap pricing for October to be much help for finished steel, even though minimal finished steel price increases are likely as a result of decreased mill output during maintenance. Supply reductions, insiders say, have prompted mills with spare capacity to ramp up their utilization rates to make up for any planned or unplanned shortfalls and maintain cash flow.
Insiders said that like September, October demand for scrap from mills is likely to remain reduced as a result of ongoing maintenance operations, as 16 mills are now expected to conduct maintenance this month, down only one mill from the 17 mills reported earlier for September.
Also, market uncertainty was reduced late this week as the US dockworker strike settled after just three days, with most market insiders expecting minimal disruption to supply.
On the mill side, Nucor announced on September 30 that its Consumer Spot Price (CSP) would remain unchanged for a second week at $730/nt ($805/mt) or $36.50/cwt., indicating that finished steel demand from the mill perspective remains limited leading up to the October scrap buy cycle.
The SteelOrbis HRC price average is assessed at $715-730/nt, ($788-805/mt), or $35.75-36.60/cwt., up $15.50/nt ($17.09/mt) from the $700-710/nt ($772-783/mt), or $35-35.50/cwt. delivered to customer range reported seven days ago.
And while HRC spot pricing was up, markets for cold-rolled coil were reported down, following minimal price increases on renewed buying interest during the week of September 23. SteelOrbis average pricing for CRC is reported at $47.00-48.00/cwt. ($940-960/nt or $1,036-1,058/mt), down $0.25/cwt., or $5/nt on the week from the earlier $47.50-$48.00 cwt. ($950-960/nt or $1,047-1,068/mt) range. The current spread between HRC and CRC is reported at $227.50/nt ($251/mt).
In the coated steel markets, HDG continues its recent price climb, posting another $5/nt gain following last week’s $15/nt rise to $890-910/nt ($981-1,003/mt), up from last week’s $890-900/nt ($981-992/mt), or $44.50-45/cwt. delivered to customer range, market insiders said.