US domestic flat steel pricing was reported mixed this week on steady but unremarkable demand, as December scrap pricing is currently seen sideways to November settles, market insiders told SteelOrbis this week.
Scrap insiders reported that recent snow storms in the Midwest and US Northeast could change the outlook for December scrap in the near term to potentially higher from the current sideways levels, however, no new indications were available at press time.
And while recent weekly base hot roll pricing from steelmaker Nucor stands remained steady for a second week at $750/nt ($827/mt) or $37.50/cwt., it remains unclear whether many spot trades are getting done at those price levels. Competitor Cleveland Cliffs also offers at $750/nt.
“I am hearing essentially flat pricing for HRC this week at about $35.00/cwt,” said one flat steel market insider. “The markets want to lift with potentially higher scrap, but pricing is (flat) at the moment.”
Flat to slightly higher pricing for HRC this week, follows steady pricing observed over the past three weeks, as demand for finished steel products has remained limited thus far in the 4th quarter, insiders said. It also appears that current spot pricing levels, continue to limit the amount of flat steel available to be brought into the US as imports, thus giving US suppliers added leverage to raise domestic prices.
“I am trying to import HRC to a large end-user and current pricing is not working,” said another HRC market insider. “However, he tells me he is paying $35.00/cwt. We need upwards of $40.00/cwt. to make any (HRC) imports feasible right now.”
Another HRC insider reported that some larger buyers were seeking pricing as low as $31.50/cwt.($630/nt or $694/mt), given current demand levels, though no reports of trades at near that level could be confirmed by SteelOrbis.
“Pricing around $35.00/cwt is not attracting anyone,” he added. “We think the market will be flat till the end of December.”
Following three weeks of steady pricing, the SteelOrbis spot average for HRC was a bit higher this week at $670-772/nt ($739-772/mt), or $33.50-35.00/cwt. FOB mill, up from $660-680/nt ($728-750/mt), or $33.00-34.00/cwt., a week earlier. Lead times for HRC are reported unchanged at 4-6 weeks, insiders said, indicating markets remain well supplied amid limited new spot market requirements thus far in November.
In other flat steel markets, CRC continued lower this week, with the weekly average declining again with most trades noted in a $905-915/nt, ($997-1,008/mt), or $45.25-45.75/cwt., range, off from $910-920/nt ($1,003-1,014/mt) FOB mill, or $45.50-46.00/cwt., market insiders said. With HRC moving slightly higher while CRC continues down, the spread between HRC and CRC is last assessed at $225/nt, ($248/mt), or $11.25/cwt., off from $245/nt ($270/mt), or $12.25/cwt, just seven days ago.
In the HDG market, prices were assessed slightly lower again on the week at $865-875/nt, ($870-880/nt), or $870-880/nt ($959-970/mt) or $43.50-44.00/cwt. FOB mill, on thin trade, versus week-earlier trades on a delivered basis, insiders said.