US steelmaker Nucor has announced an increase in the weekly spot price for hot rolled coil (HRC) by $10 per ton, bringing it to $720 per short ton. This follows a two-week period where Nucor maintained the price at $710 per ton, after a previous increase of $15 per ton on August 26.
Despite weak demand, Nucor is gradually raising prices to manage expectations and prepare the market for further growth. Current price levels help maintain profitability, and post-Labor Day, steelmakers plan to restructure operations to prevent price drops.
In the absence of demand, companies aim to reduce production capacity to maintain margins. In August 2024, North American HRC prices rose by $50 per ton to $700 per ton, marking the first increase in three months, largely due to Nucor's actions. Global HRC prices had been declining, with significant drops in the US and China, where prices hit multi-year lows.
