Nucor Announces Fourth Consecutive Price Drop for Hot-Rolled Coil (HRC)

Nucor, one of the leading American steelmakers, has lowered its hot-rolled coil (HRC) prices for the fourth consecutive time. For the week of May 26 – June 1, 2025, the company’s spot price for HRC dropped by $10 per ton. It settled at $870 per short ton for most production facilities. However, California Steel Industries (CSI) reported a price of $920 per ton. This marks a 2.1% decrease from the previous week.

This is the fifth price reduction by Nucor this year, following an ongoing trend of declining HRC prices. The latest drop represents a total decrease of $60 per ton since early May. This signals continued pressure on steel prices in the U.S. market.

HRC Prices and Market Trends in the U.S.

As of May 20, 2025, U.S. HRC prices were recorded at $845 per ton FOB. This remained stable compared to the previous week. It indicates that Nucor’s new price is slightly above the broader market average. However, it still reflects a significant reduction from earlier this year.

Despite these declines, the current price of $870 per ton is still about $120 higher than January’s figures. This shows that Nucor’s prices remain elevated compared to the start of 2025. Meanwhile, Cleveland-Cliffs, another major U.S. steel producer, has also reduced its HRC prices. They opened June orders at $910 per ton, a $65 per ton decrease from May’s offer.

Factors Influencing HRC Price Reductions

The recurring price drops come amid fluctuating market conditions. Some analysts point to lower demand and softening steel prices globally. The reduction of $60 per ton in Nucor’s HRC offers highlights the ongoing pressure on U.S. steel prices. This has also been reflected in the pricing strategies of other key players in the market.

The price drop is partly attributed to the adjustment in the overall demand-supply balance in the steel sector, especially in the U.S. domestic market. With lead times for HRC orders averaging 3–5 weeks, suppliers are reacting to the need to stay competitive. They are doing this while navigating price volatility.

SuperMetalPrice Commentary:

Nucor’s decision to lower its HRC prices for the fourth time this year is a reflection of the challenging conditions in the U.S. steel market. While these reductions may benefit downstream industries by providing cheaper raw materials, they put pressure on steel producers. These producers have already been squeezed by global oversupply and rising production costs.

The ongoing adjustments in pricing show how U.S. steel producers are adapting to a changing market. However, the question remains how long these price declines can continue before they begin to affect supply chain stability and production capabilities. As steel prices continue to fluctuate, we will be closely monitoring how these changes impact producers like Nucor. We will also monitor how these changes affect steel consumers across various industries.