US steelmakers’ published prices debated at MEPS event

The influence of Nucor’s Consumer Spot Price (CSP) for hot rolled coil will be among the topics explored when MEPS International hosts a steel market seminar in the United States next month.

MEPS’s US Steel Market Event will take place at Medinah Country Club, Chicago, Illinois, on October 9. The event, hosted by MEPS International and event partners Legacy International Associates, will see leading market figures from some of North America’s major mills give key insights into the regional steel market. 

MEPS’s head of price analysis and forecasts, Kaye Ayub, and US-based steel market consultant Laura Hodges will provide assessments of the regional and international market dynamics. They will also present MEPS’s latest independent 12-month steel price forecast. 

US steelmakers’ price announcements 

One of the key subjects that will be explored at the event is the regular publication of spot prices by US steelmakers.  

Back in April, Nucor signalled its intention to publish its weekly base price. The initiative represented a significant shift away from traditional price models, which focus on detailed negotiations between buyers and sellers. Cleveland-Cliffs responded to the launch of Nucor’s CSP by introducing its own monthly spot price. 

Some purchasing managers in the US welcomed the move, claiming that Nucor’s approach would help to increase price transparency, enabling them to make informed purchasing decisions. 

However, recent movements in Nucor's CSP have highlighted to hot rolled coil buyers in the US that steelmakers’ published spot prices are still not a reflection of transaction prices, or the levels of demand, in the wider market. This independent price insight is provided by MEPS, which sources its data from research contacts operating in steel markets across the world. 

Nucor’s recent CSP price movements 

Nucor increased its consumer spot price for hot rolled coil to USD710 per short ton on August 26, before maintaining this price level in the latest declaration. Cleveland-Cliffs’ official list price is USD730 per short ton.  

Some of MEPS’s research partners claim that the recent rise in the weekly CSP gives the impression that domestic transaction prices are moving up. However, most report that few deals are being conducted at these new asking prices. 

The debate surrounding the role of US steelmakers’ published prices will be a key talking point at next month’s MEPS US Steel Market Event. To register your interest in attending, click here and fill out the online form.