Steel Markets
Nucor Up $100/ton on Sheet, Targets $1,000/ton on Hot Band
Written by David Schollaert
February 21, 2023
Nucor Corp. is pushing its hot-rolled coil price up by at least another $100 per ton ($5 per cwt), its third sheet price hike in a matter of three weeks.
The Charlotte, N.C.-based company, the largest steelmaker in the US, said the move was effective immediately for base prices on new orders.
Nucor made the announcement in a letter to customers dated Tuesday, Feb. 21, just eight days after announcing a $50-per-ton increase. Nucor said its new base price for hot band is $1,000 per ton.
The steelmaker has now hiked sheet prices by $200 per ton since Feb. 3.
“We reserve the right to review and requote any offers that are not confirmed with either a Nucor sales acknowledgment or written acceptance by both parties,” Nucor said in the letter.
Nucor did not clarify the driver behind the string of price hikes, but hot band has now increased by $310 per ton since Thanksgiving, accelerating faster than the $275-per-ton rally in response to the invasion of Ukraine.
It has been nearly seven months since hot band was at or above $900 per ton, according to SMU’s interactive pricing tool. At the time, though, prices were just about halfway into a 24-week pricing collapse from the most recent high of $1,480 per ton sent in mid-April.
Steel Market Update’s hot-rolled coil price currently stands at $825 per ton, up roughly 19% from $695 per ton at the beginning of the year and up 34% from a 2022 low of $615 per ton recorded in November.
We update our prices on Tuesday, so our current price does not reflect the latest round of increases.
By David Schollaert, david@steelmarketupdate.com
David Schollaert
Read more from David SchollaertLatest in Steel Markets
USW cheers Evraz NA agreement with Atlas Holdings
The United Steelworkers (USW) labor union celebrated recent news of the signed agreement between Atlas Holdings and Evraz NA in which the Connecticut-based private equity company said it plans to acquire North America’s Evraz facilities.
Steel buyer spirits tempered by soft spot market conditions
Steel sheet buyers report feeling bogged down by the ongoing stresses of stagnant demand, news fatigue, tariff negotiations or implementation timelines, and persistent macroeconomic uncertainty.
Hot-rolled coil buyers continue seeking certainty
Steel market participants contend that buyers will remain in “wait-and-see" mode until some market stability is restored.
Latin American steel advocates warn on cheap import flood
Subsidized Chinese steel imports and cheap steel products from Association of Southeast Asian Nations (ASEAN) entering Latin American (LATAM) are threatening the region's steel market.
CRU: Steel prices fall amid global demand weakness
The forceful headwinds bearing down on steel markets across the globe have created demand challenges and sent prices southward. The US, however, challenged the global trend.