Nucor, a U.S. steel manufacturer, has announced a reduction in its hot-rolled coil (HRC) prices by $10, bringing the new spot price to $720 per short ton. This marks the first price adjustment since an early July cut which brought prices down to $650 per ton. After the July reduction, prices had climbed steadily, reaching between $690 and $700 by late August and then stabilizing at $730 at the beginning of September. This recent cut reflects ongoing adjustments in response to market conditions.
The decision to lower prices comes against a backdrop of market uncertainty, where demand remains robust but buyer confidence is shaky. Consumers are showing reluctance to accumulate large inventories towards the year-end, reflecting their concerns about the sustainability of current price levels and the likelihood of future price drops. This cautious sentiment among buyers is compounded by broader economic instability and a surplus in supply, which places additional pressure on steel producers to adjust their pricing strategies accordingly.
Internationally, the trend in HRC prices mirrors the cautious stance observed in the U.S. market. During August and early September, global prices for hot-rolled coil continued their downward trajectory driven by weak demand and economic uncertainties. Particularly in Europe and China, HRC prices dropped to their lowest points since 2020. However, in North America, there was a slight rebound in prices, influenced by increased offers from leading manufacturers like Cleveland-Cliffs and Nucor. Specifically, Cleveland-Cliffs reported a monthly spot price of $750 per ton for September. The October figures are anticipated, likely reflecting a further decrease .
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