Steel Products Prices North America
Hyundai Lowers Offers for Q1 '22 HRC, Sheet Prices Below Plate
Written by Michael Cowden
December 19, 2021
It’s not just domestic steel prices that are falling rapidly, so too are prices abroad.
Case in point: South Korean steelmaker Hyundai. Its latest offer for hot-rolled coil for February-March shipment to the West Coast is $1,450 per ton DDP to Los Angeles-area ports.
That’s down significantly from prior offers of $1,600-1,640 per ton, according to market participants.
Recall that South Korea agreed to a quota and so is not subject to Section 232 tariffs of 25% that imports from other nations face.
While some expressed frustration that Hyundai was effectively devaluing orders placed earlier in the year, others said it was not unexpected given broad based steel price declines – including in recent offers from U.S. mills.
Steel Market Update does not officially track import prices. But U.S. hot-rolled coil prices currently stand at $1,670 per ton, down 15% from a 2021 high, recorded in early September, of $1,955 per ton.
And most market participants expect sheet prices to continue to decline:
“I have had more unsolicited offers,” one respondent to a recent SMU survey said.
“I don’t believe any mill would turn down a 1,000-ton order,” said another.
“Mills are certainly asking for contract orders earlier than usual,” noted a third.
On the plate side, meanwhile, Hyundai is offering $1,500 per ton delivered DDP Long Beach and $1,470 per ton DPP Houston and New Orleans.
The variation between California prices and Gulf Coast prices is not unusual. West Coast ports are typically more expensive.
What is notable is that Hyundai is charging more for plate than for coil – mirroring a recent trend in the domestic market.
SMU’s U.S. plate price is at $1,815 per ton, or $145 per ton more than hot rolled coil prices. We noted last month that plate was on pace to regain its typical premium over sheet.
And now it has, as the chart below shows. The red line is hot rolled coil prices, and the orange line is plate prices:
You can recreate that chart using our interactive pricing tool.
Our data also reflects recent sentiment from market participants. Prices are down in the sheet market but “NOT in plate products … two separate stories,” a fourth survey respondent said.
By Michael Cowden, Michael@SteelMarketUpdate.com
Michael Cowden
Read more from Michael CowdenLatest in Steel Products Prices North America
CRU: Longs pricing trends diverge in North, South America
Most longs prices in the US were unchanged this month, except for rebar, which declined by $1.50/cwt ($30/short ton) m/m. While end-use demand is stable, inventories are well-stocked, keeping purchases limited. Domestic availability is sufficient to meet current demand, hindering the appetite for imported material. Meanwhile, prices for scrap remained under pressure in June, with […]
Nucor cuts plate prices by $125/ton, cites ongoing competition
Nucor Corp. announced that its plate mill group would cut prices for as-rolled, discrete, and normalized plate with the opening of its August order book.
Nucor cuts HR price for fourth straight week
Nucor lowered its consumer spot price (CSP) for hot-rolled (HR) coil by another $10 per short ton (st) for the first week of July. The steelmaker said in a letter to customers on Monday that its CSP base price for the week will be $670/st for all of its sheet mills with the exception of California Steel Industries (CSI).
Cliffs sets $720/ton HR price with opening of August books
Cleveland-Cliffs on Tuesday announced its monthly hot-rolled (HR) coil price of $720 per short ton (st) with the official opening of its August order book. The rate is down from last month’s price of $800/st.
CRU: Demand weakness continues to weigh on global sheet markets
Demand has remained persistently weak across the globe for sheet steel, weighing on prices. US HR coil prices fell the furthest this week as high-volume, low-priced deals were transacted as mills looked to fill order books and competed with one another amid relative demand weakness. Meanwhile, European prices were also down due to low demand […]