Three U.S. steel giants announced this week that they were raising prices for hot-rolled steel by $50 per ton amid a downturn in the spot market. The increase marked the first price increase in major US steelmakers since mid-March.
Hot rolled coil (HRC) prices in the US spot market fell 27% from their March high to $880/tonne this week , which is a four-month low.
Raw material prices also came under pressure, with U.S. ferrous scrap prices in June falling $60 per gross ton in the Midwest and $50 per ton in the Southeast as small mill purchasing programs impacted scrap prices.
However, Nucor raised the price of hot rolled coil (HRC) to a low of $900 per short ton and ArcelorMittal raised the base price of hot rolled Coil (HRC) at its AM/NS Calvert mill in Alabama to $950 per short ton.
Major steelmaker Steel Dynamics (SDI) is preparing to announce price hikes as it expects destocking from customers will accelerate due to low inventories.
Low inventories should reduce the long trend of destocking and support steel prices. Orders remain "solid" in the automotive, construction, industrial and energy industries, SDI said in a statement containing its second-quarter outlook.
