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    July 22, 2021

    Hot Rolled Futures: Into the Arena

    Editor’s note: SMU contributor Bryan Tice is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and the firm design and execute risk management strategies for clients along with providing process and analytical support. Before joining Metal Edge Partners, Bryan held a variety of commercial leadership roles involving purchasing, sales, and risk management for Feralloy Corporation, Cargill Steel Service Centers and Plateplus Inc. You can learn more about Metal Edge at www.metaledgepartners.com. Bryan can be reached at Bryan@metaledgepartners.com.

    Following the conclusion of the NBA finals on Tuesday night, one of the TV analysts quoted Theodore Roosevelt’s famous “Citizenship in a Republic” speech in a post-game analysis as a nod to Giannis Antetokounmpo’s epic game 6 performance and his eight-year journey in becoming an NBA champion. Many refer to Roosevelt’s “Man in the Arena” paragraph of the speech as the most memorable. It is one of my all-time favorites. It has provided inspiration to Ryder cup captains and Rugby coaches and has been memorized by Naval Academy plebes for years and recited by presidents from Nixon to Obama. At its core, the passage is about adversity, courage, resilience and consequence. Oddly, it made me think of the steel market over the last year and a half. 

    Latest in Prices

    Mills seek more scrap after lower prices fail to attract tons

    Several mills that bought October scrap early last week are still asking for additional supplies, scrap market participants said. The reason: the mills' initial prices did not attract enough of the raw material, they said. A trading source based in northern Ohio said three mills have contacted his firm seeking offers for additional tons. He said the mills asked for offers even if prices were higher than their original buys last week.

    Nucor increases spot HR to $1,240/ton

    Nucor said on Monday, Oct. 12, that its consumer spot price (CSP) for hot-rolled (HR) coil will be $1,240 per short ton (st) this week, a $10/st increase from a week earlier. The CSP for HR coil from California Steel Industries (CSI) on the West Coast will be $1,305/st, up $15/st from the prior week. Nucor is still offering lead times of three to five weeks, according to the letter to customers. You can track mill price announcements on our website. Steel Market Update (SMU) published a weekly price assessment on Tuesday, Oct. 6, showing HR coil prices averaging $1,270/st, up $10/st from the previous week. We will update our prices on the evening of Tuesday, Oct. 13.