Cleveland-Cliffs Raises HRC Price to $950/mt for July Orders

Cleveland-Cliffs Increases Hot-Rolled Coil Price for July Orders

Cleveland-Cliffs, a leading American steel producer, has raised the price of hot-rolled coils (HRC) to $950 per metric ton (mt) for orders placed in July. This increase of $40/t, or 4.4%, represents a notable change from the June offer of $910/t. The adjustment reflects ongoing shifts in market conditions, including fluctuating demand and raw material prices.

Despite the increase, Cleveland-Cliffs emphasized its commitment to maintaining strong relationships with supply chain partners. However, the company has also indicated that it may revise prices further during the July booking window, depending on evolving market factors.

The Declining U.S. HRC Market in Recent Months

The steel market has experienced a series of fluctuations over the past few months, with prices undergoing significant changes. In May, the U.S. HRC market saw a sharp decline of 7.1% month-over-month, bringing the average price down to $885/t ex-works. This drop was attributed to a combination of weak end-user demand, lower scrap prices, and subdued business activity following the end of the “panic buying” period seen earlier in the year.

Cleveland-Cliffs’ price adjustments followed a pattern set by other major U.S. steel producers. Nucor, another key player in the market, also reduced its prices in April and May, losing $60-$70/t in the process. However, signs of price recovery began in June, with several companies including Cleveland-Cliffs raising their prices after several weeks of lower offers.

Market Outlook and Future Expectations

While Cleveland-Cliffs’ price increase for July reflects a positive shift, the broader market sentiment remains cautious. Most analysts predict a gradual decline in steel prices during the summer months, given the overall sluggishness in business activity and low demand for steel products. Despite isolated signals of potential increased purchases, the market’s future appears uncertain.

The U.S. steel industry remains under pressure, with competition and fluctuating demand shaping pricing strategies. Steel producers like Cleveland-Cliffs are navigating a complex landscape, adjusting their prices in response to external factors and ongoing market trends.

SuperMetalPrice Commentary:

The latest price increase by Cleveland-Cliffs highlights the volatility within the U.S. HRC market. Rising prices suggest that producers are beginning to recover from previous months of weakness, yet the market remains highly unpredictable. Factors such as weak end-user demand, fluctuating scrap prices, and competition from international suppliers will continue to affect the steel market’s direction. Steel producers must carefully monitor these conditions, balancing price hikes with long-term customer relationships, while also preparing for potential slowdowns as the summer progresses.