It is expected that the market will accept an increase to the level of $720/t
US steelmaker Nucor has announced an increase in the weekly spot price for hot rolled coil (HRC) by $10/t compared to the previous week – to $720 per short tonne. This is reported by Kallanish.
Over the past two weeks, Nucor has maintained spot prices for HRC at $710/tonne. The last increase was on 26 August – by $15/t, from $695/t to $710/t. The published price is expected to be accepted by the market.
Although demand for HRC is still weak, the company is gradually raising prices to manage price expectations and prepare the market for further growth. The current price levels are helping steelmakers maintain profitability in the current environment, and after the Labour Day holiday, the steelmakers intend to restructure their operations to prevent a price drop. In the absence of demand, companies plan to further reduce production capacity and limit production to maintain margins.
In August 2024, prices for hot rolled coils in North America increased by $50/t Ex-Works – to $700/t. This is the first time in 3 months that prices have risen. Product prices have bottomed out, mainly due to an increase from Nucor.
In July, global hot-rolled coil prices continued to decline in most major markets. In Europe, the situation was largely stable, with slight fluctuations, while the US and China saw a 4-7% decline in prices. In particular, Chinese prices hit a 4-year low, while US prices reached their lowest level since September 2023.
Read more: Capital investment in the steel industry increased by 56% y/y in 2023
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