Nucor raises HRC prices for the second week in a row

US steelmaker Nucor has announced an increase in the weekly spot price for hot-rolled coils by $15 per tonne compared to the previous week, up to $690 per short tonne. This was reported by Kallanish.

The company has been raising HRC prices for the second week in a row. On July 29, Nucor announced that HRC prices would be raised by $25/t to $675/t. Thus, since then, the supply of products has increased by $40/t. By gradually increasing prices, the company intends to restore prices that have fallen by more than 40% since the beginning of the year.

Market sources indicate that Nucor’s gradual price increase signals that the HRC market has reached the bottom. The American Cleveland-Cliffs is also increasing its supply.

“I believe the market is optimistic about accepting higher prices. This indicates an increase in demand for products,” a market source said.

The last price increase in the US HRC market was observed in April. Since then, they have been steadily declining.

In July, prices for HRC in the North American market decreased by 7.1% – to $650/ton Ex-Works. This was the third monthly decline in a row. At the same time, at the end of July, Nucor and Clevland-Cliffs reported price increases amid high production costs and increased order flow. This may indicate a turning point in the US HRC market, and prices will gradually recover with the end of the summer vacation season.