Nucor is cutting HRC prices for the first time since early July

American steel producer Nucor announced a decrease in the weekly spot price (CSP) for hot-rolled coil (HRC) by $10/t compared to the previous week – to $720 per short ton. This is evidenced by the company’s data.

Nucor’s HRC offers decreased for the first time since the beginning of July this year. On July 15, the company announced that CSP is down by $20/t compared to July 8, to $650/t. Since then, prices have gradually increased, reaching $690-700/ton at the end of August. At the beginning of September, offers increased to $730/t and stabilized.

Prices fell against the background of uncertainty in the market. Although demand is sufficient, consumers are not confident in the need to create significant stocks for November-December. Buyers do not believe in a significant reduction in prices in the near future, but they are also not sure that current prices are acceptable, so they make decisions cautiously. In addition, producers are under pressure from high supply and economic instability.

As GMK Center reported earlier, global hot-rolled coil prices continued to decline during August through early September under the influence of weak demand, economic uncertainty and high inventory pressures. On the market of Europe and China, offers have reached minimums since 2020. At the same time, some recovery in prices was observed in North America, mainly on the background of increased offers by key metallurgical companies Cleveland-Cliffs and Nucor. In particular, the Cleveland-Cliffs monthly spot price for September was $750/t. Soon, the October price will be published, which will probably also experience a decline.