Nucor Hot Rolled Coil Price Impact on Steel Market

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Nucor has reduced hot rolled coil (HRC) prices for the third time this May, signaling ongoing shifts in the U.S. steel market. The American steel giant lowered its weekly spot price to $880 per short ton for most plants for the week of May 19-25, 2025. This marks a $20 per ton decrease from the previous week and a $50 decline since early May.

Declining Prices Reflect Scrap Cost Drops and Market Instability

Nucor’s price cut follows a continued downward trend, driven largely by a reduction in scrap metal prices across the U.S. Scrap costs significantly impact steel production expenses, directly influencing HRC pricing. Market observers also point to weak sales and ongoing uncertainty around federal tariff policies and persistently high interest rates as factors undermining demand.

Despite the recent price falls, Nucor’s HRC prices remain $130 higher than January levels. The highest price since the start of the year peaked at $935 per ton on March 24, sustained until mid-April. California Steel Industries (CSI), an important regional supplier, currently offers HRC at $940 per ton, down slightly but still above Nucor’s general price.

Order lead times are estimated at 3 to 5 weeks, reflecting moderate delivery delays amid current supply-demand conditions.

Industry Context: Comparison with Other Key Players

Market data from the Steel Market Update (SMU) reports U.S. HRC prices averaging $845 per ton FOB as of May 13, down $30 per ton week-on-week. Delivery times average around 4.6 weeks, aligning closely with Nucor’s reported lead time.

Meanwhile, Cleveland-Cliffs, another major U.S. steel producer, last announced a monthly hot rolled steel price of $975 per ton in early April, indicating higher pricing than Nucor. Cleveland-Cliffs’ May order book opened at this level, reflecting a $75 increase from April’s $900 per ton.

The difference in pricing strategies illustrates competitive positioning among top U.S. producers as they navigate fluctuating raw material costs and demand uncertainties.