American steel company Nucor has notified its customers of another increase in the weekly spot price (CSP) for hot-rolled coil (HRC). For the current week (December 22-28), offers rose by $10/t or 1.1% compared to the previous week, to $950 per short ton, which is the highest value for the current year.
At the same time, Nucor’s joint venture on the West Coast, California Steel Industries (CSI), also increased its HRC prices to $1,000/t, which is $10/t or 1% more than last week.
Thus, the company continues a series of price increases that has been going on for the ninth week in a row. The total increase for this period was $75/t for all companies except CSI (+$65/t). The figures are at their highest level since the beginning of the year.
Product delivery times remain within 3-5 weeks.
According to SMU, the average price for hot-rolled coil was $910 per short ton FOB in the east of the Rockies region as of December 16. Compared to the previous week, the figure rose by $15/t. Kallanish estimates HRC offers in the US last week at $905–920/t compared to $900–915/t a week earlier.
In addition, Nucor informed customers of its intention to increase prices for all flat products by $40 per short ton. In a statement on December 22, the company said that the new prices would apply to all new orders not confirmed by the end of the business day.
The increase coincided with the opening of the February order book for flat products. The letter also notes that the company reserves the right to revise prices for orders that have not been confirmed by an official acceptance notice.
The current price adjustment follows a previous increase of $30/t announced by Nucor in late November.
It should be recalled that in November, the global hot-rolled coil market was mostly growing. The EU and the US saw price increases amid more stable demand and reduced supply, while China, on the contrary, remained under pressure from seasonal decline and competition in export markets. Offers from US suppliers rose 4.1% between October 31 and November 21, to $970/t.
Courtesy: https://gmk.center/en/news/
