USA HRC Spot Prices Nearing $1,050/ton
Market participants on both the buy- and sell-sides tell WSD early this week that limited spot market availability is resulting in hot-rolled coil (HRC) prices approaching — and in some cases — exceeding $1,050 per ton for small tonnage orders.
“Many domestic mills are booked out several weeks, with most satisfying contract orders,” a steel distributor said. “I’ve heard as high as $1,060 per ton for about 100 tons and below that for larger volumes—but only if a mill can accommodate that,” he added.
Nucor, meanwhile, raised its base Consumer Spot Price (CSP) for HRC on Monday to $1,045/ton—another $5/ton higher than last week. Its CSI price on the West Coast was also increased, reaching $1,095/ton.
“Both Nucor spot prices are reasonable—if you can still get it,” a Midwest service center buyer said.
Several sources noted that the steady climb in Nucor’s base price offers since late December have been moderate. “The market is tight and experiencing steady demand; the price hikes have not been outrageous,” another steel distributor in the southern US said.
A number of factors continue to support the HRC price rally, according to a mill sales rep. “Orders are strong with mostly contract business and some spot-buying fill-ins,” he said. “Overall demand is good; collectively mills’ operating rates are nearing 80%. Imports remain greatly diminished and beyond the tariffs, the geopolitical situation makes ocean transportation costs risky.”
HRC futures contract on the CME remain buoyant. The April contract settled Monday at $1,046, and May saw a settle of $1,076/ton on 222 lots. There was more limited volume (45 lots) on the June contract, but a lofty settlement of $1,086/ton. The exchange showed 102 lots in July at a $1,055 settlement.
Sources also said prime scrap traded sideways for April, but some other grades were down $10-20/gt.