Nucor Consumer Spot Price Down $6/mt as US Finished Steel Prices Continue to Slide
Monday, 17 June 2024 17:52:43 (GMT+3) San Diego
Nucor dropped its Consumer Spot Price (CSP), the price it charges its customers for hot rolled coils at all of its producing mills, by $5/nt ($6/mt) to $715/nt ($788/mt) FOB mill, the steel maker said today in a weekly letter to its customers.
This week's dip follows a more substantial decline announcement on June 10, when the steel maker reduced its CSP by $60/nt ($66/mt), to $720/nt ($794/mt) FOB mill, a 7.69 percent week-on-week drop.
Flat-rolled market insiders said the recent Nucor CSP price declines could signal that HRC prices may be reaching a price floor. The current Nucor price represents the lowest CSP on record since the weekly announcements began in April.
Recent Nucor price declines come as flat steel prices continue to drop in US spot markets amid slack US demand for finished steel products and falling June scrap prices.
The most recent hot rolled coil prices are heard at $35-$36/cwt. ($700-$720/nt or $771-$794/mt), while US Midwest domestic busheling scrap settled down $40/gt ($39/mt) to $375/gt ($369/mt) for June versus May settled scrap values.
Although many market insiders contend it's early in the month to make a solid July scrap call, several contacts reported a sideways-to-June expectation to SteelOrbis for July scrap values for domestic Midwest scrap. Early expectations for the US East Coast indicate a tighter scrap market, fueled by solid exports to Turkey and other European countries, could cause July scrap pricing to rise versus June settled values.
Sideways July US Domestic Scrap Pricing Call Overshadowed by Rising Export Scrap Demand
Friday, 14 June 2024 22:48:44 (GMT+3) San Diego
While several SteellOrbis contacts commented this week that it's "just too early to tell" about July scrap pricing, an early consensus seems to indicate a sideways trend for July domestic scrap, versus June settled values.
Sideways pricing to June would peg Ohio Valley busheling scrap at at $375/gt ($381/mt) delivered to customer location, P&S scrap at $355/gt ($361/mt) delivered, shredded at $380/gt ($386/mt) delivered to customer, and HMS#1 at $320/gt ($325/mt) delivered to customer location. As finished steel pricing faltered through May, June scrap pricing in the Ohio Valley settled overall $20-$40/gt ($20-$40/mt) less than May prices, SteelOrbis data shows.
"People are talking (about) July at the moment, but right now it's pretty much a crap shoot," said one Midwest scrap insider. "Whichever way July scrap goes, I don't think its going to move much from June price levels." The bigger story is on the US East Coast, scrap insiders said, where June pricing was only $20-$35/gt ($20-$36/mt) less on a delivered-to-customer basis versus May, owing to solid export demand for more limited scrap inventories, contacts told SteelOrbis.
A sideways-to-June July scrap call pegs East Coast busheling at $335/gt ($341/mt) delivered, P&S is expected to come in at $320/gt ($325/mt) delivered, unchanged from June levels, while shredded and HMS#1 are expected to come in steady to June at $370/gt ($376/mt) and $290/gt (295/mt) delivered to customer, respectively.
Despite solid monthly declines across the board in US local scrap pricing, US East Coast export scrap spot prices were solidly higher this week as exporters scrambled to meet reported robust demand for July scrap from Turkey and other importing countries, scrap market insiders told SteelOrbis this week.
"The export market is much stronger in terms of demand than the domestic US scrap market right now," said one SteelOrbis scrap market insider. "Turkey has a lot of demand, and the exporters know it, so their raising their prices."
Contacts say they expect about 25 deep sea cargoes from the US and the UK to be booked by Turkey for July delivery. The total doesn't include deliveries from Russia.
Philadelphia dock delivered P&S scrap pricing is reported at $300-$305/gt ($305-$310/mt), up from $260-$270/gt ($264-$274/mt) one week ago. The price rise for P&S scrap, represents a 15.4 percent weekly increase.
Despite rising P&S delivered dock pricing SteelOrbis contacts said East Coast delivered dock shredded grades in New York and Philadelphia, currently priced near $290/gt ($295/mt) could be "near a price bottom" as demand from exporters remains more limited.
"Many exporters have their own shredders now, so they won't buy already shredded material because if they do, they loose out on the non-ferrous component of the scrap," a contact said.
"The exporters are looking for the non-ferrous recovery to boost their margins," the scrap contact added. "So, they don't want to buy shredded scrap from other people, which is limiting the demand."
HMS#1 New York 80:20 dock delivered scrap is discussed at $270-$290/gt ($275-$295/mt), little changed on the week. Contacts reported higher dock delivered HMS#I pricing of $290-$310/gt ($295-$315/mt) out of Camden, New Jersey.
