Nucor has resumed raising prices for hot-rolled coils

The American steel producer Nucor has once again raised its spot price (CSP) for hot-rolled coils by $5 per short tonne compared with the previous week. This is stated in a letter from the company to its customers dated 13 July.

The new offer price stands at $1,135/t.

The CSP for the joint venture California Steel Industries (CSI) has also risen by $5 per short tonne to $1,185/t.

From the end of January to 22 June this year, Nucor consistently announced increases in the spot price for hot-rolled coil, with increments of $5–15 per short tonne. From 22 June, the company took a three-week break, maintaining its offer at $1,130 per metric tonne.

Delivery times remain unchanged – between 3 and 5 weeks.

According to Steel Market Update, the average price for hot-rolled coils in the US stood at $1,160 per short tonne as of 7 July. SMU notes that some domestic market participants expect prices for this product to remain stable until the end of this year, as mills will not have significant spare capacity available to fulfil spot orders. Furthermore, the annual summer slump has not led to a sharp drop in demand – most steelmakers are forecasting a moderate seasonal slowdown.

It should be noted that the Chinese steel producer Baosteel is raising prices for hot-rolled steel for August sales. This move reflects expectations of a future improvement in demand. Demand for flat steel in the country’s processing sector has remained low due to weather conditions.