Nucor cuts weekly hot rolled coil prices by $60/t

American steelmaker Nucor has announced a $60/t reduction in weekly hot-rolled coil prices to $720/t. This was reported by Kallanish with reference to the company’s data.

The decline in prices is a result of a slowdown in steel demand. Market participants note that at the end of last week, local rolling mills reduced prices for hot-rolled coils to stimulate sales.

The last time Nucor resorted to sharp price cuts was in early May. Back then, it announced a $65/mt cut to $760/mt. This week, the price offer is down 7.7% compared to the previous week.

«It is surprising that Nucor has resorted to such a sharp price cut. However, the company has its own formula that dictates prices. Demand is poor, so Nucor would rather sell in a very sluggish market than wait for the next economic recovery,” said the Great Lakes distributor.

The market weakness is largely due to high interest rates.

Cleveland-Cliffs, which publishes a monthly spot price for hot-rolled steel, announced on May 23 that July prices would be $800 per tonne.

In May 2024, prices for hot-rolled plates fell in most major markets. The trade is constrained by the excess of supply over demand, unfavorable economic outlook and uncertainty in the steel market. In the North American region, prices for hot-rolled coils fell sharply from $800-850 per tonne to $760-805 per tonne over the period from May 1 to 24.

In April 2024, Nucor announced the introduction of weekly consumer spot prices (CSP) for hot-rolled steel. The CSP is published every Monday, providing customers with spot prices for hot-rolled steel for the week ahead. The published prices are valid until the next publication.