Nucor Raises Hot Rolled Coil Prices for the Second Time Since June

Overview of Nucor’s Price Increase for Hot Rolled Coils

American steel giant Nucor has raised the weekly spot price for hot rolled coils (HRC) by $10 per ton for the week of June 16-22, 2025. This marks the second price increase in June, following a period of 10 weeks with declining prices. The new offers range from $900 to $960 per ton, with the higher price set for California Steel Industries (CSI) at $960 per ton, a 1.1% increase.

This adjustment follows a 7.1% drop in HRC prices during May, where the prices fell by $60-70 per ton. Despite these fluctuations, Nucor’s prices are still $150 per ton higher than at the beginning of the year, reaching their peak on March 24 at $935 per ton.

Factors Influencing the Price Adjustments

The US hot-rolled coil market has experienced significant price volatility in recent months. After a 10-week period of price decreases, a combination of factors has influenced this recent price hike. Weak end-demand, a decline in scrap prices, and sluggish business activity were some of the primary reasons for the May price drop. The market also saw a decrease in panic buying, which had initially inflated demand in March and April.

Despite these market pressures, Nucor’s price increase signals a potential shift, with some analysts speculating a gradual upturn in HRC purchases by June. However, most market participants anticipate that the prices will continue to decline over the summer due to weaker demand.

Impact of the Price Adjustments and Future Outlook

Nucor’s recent price hikes come as part of an ongoing effort to stabilize their revenue streams amidst fluctuating market conditions. The lead time for orders has been estimated at 3-5 weeks, meaning that customers will have to factor in this delay when making purchasing decisions.

Additionally, Cleveland-Cliffs, another key player in the US steel industry, has announced the opening of its July HRC order book at a higher price of $950 per ton, marking a 4.4% increase compared to June prices. This suggests that other major producers may follow suit, further pushing prices upward in the near future.

SuperMetalPrice Commentary:

Nucor’s recent price increase for hot rolled coils illustrates the ongoing fluctuations within the US steel market. While the price surge might offer a brief reprieve for steel producers, the underlying weakness in demand and rising input costs could limit sustained price hikes. The expectation of further declines during the summer indicates that the market is still adjusting to post-pandemic demand patterns.

Steel companies must continue to monitor these market trends closely. Strategic price adjustments, alongside efforts to streamline operations, will be crucial for maintaining competitiveness in this volatile environment.