US flat steel prices continued to ebb lower again this week as demand continues to remain limited, market insiders told SteelOrbis this week.
The flat steel market situation this week differs from the week of June 10, when steel producer Nucor slashed its Consumer Spot Price (CSP) -the price it charges system-wide for hot rolled coils- to $720/st ($794/mt) FOB mill. This week, Nucor trimmed the CSP by $5/st ($5.51/mt) to $715/st ($788/mt) FOB mill. This week’s Nucor announcement represents the lowest CSP on record since the index was released in early April.
Domestic spot HRC prices are now assessed $25/st ($28/mt) less at $675-$725/st ($744-$799/mt) delivered to customer, versus ($700-$750/st ($772-$827/mt) seven days ago.
Lead times this week indicate HRC requires 3-4 weeks for delivery, indicating markets remain well supplied and mill inventories adequate heading into the third week of June, market insiders said.
In other flat steel grades, CRC is assessed $5/st ($5.51/mt) less at $1,040-$1,050/st ($1,146-$1,157/mt) delivered to customer, versus prior week assessments at $1,050/st ($1,157/mt). In coated products, HDG is discussed in continued light trade at $980-$990/st ($1,080-$1,091/mt) delivered to customer, versus prior week estimates at $1,000/st ($1,102/mt) delivered.
Lead times for CRC and HDG products continue at 4-7 weeks, suggesting that markets remain well supplied with mill inventories mostly adequate to meet current requirements heading into the third week of June.
Market insiders continue to tell SteelOrbis that declining finished steel prices and a sideways to lower July scrap pricing forecast versus June was keeping many away from the flat steel spot markets and from purchasing during a period of declining finished and scrap steel prices.
On the scrap front, Ohio Valley busheling scrap for July is discussed at or below $375/gt ($381/mt) delivered to customer. US Northeast busheling scrap is talked at or below $335/gt ($341/mt) delivered to customer.
With mid-month reports for July scrap pricing indicating more of the same declining prices, activity in the markets remains limited.
“There’s absolutely nothing going on,” said one Midwest scrap insider. “Right now, pricing is very low and (scrap) flows into the yards are very light. It’s been over 90 degrees, so nobody’s going to be looking to pick up scrap, especially at these low prices. I don’t see scrap prices going up unless some miracle happens.”