Nucor's Commitment to Weekly HRC Spot Pricing
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Nucor, a prominent U.S. steel manufacturer, has reaffirmed its dedication to publishing weekly spot prices for hot-rolled coil (HRC). This initiative, introduced around 3.5 months ago, aims to reduce speculative buying in the market.
Key Points
Early Days for CSP: Nucor acknowledges that the Customer Spot Price (CSP) is still in its infancy, but views it as a meaningful reference for customers whose needs are driven more by end-market conditions rather than speculation.
Market Impact: CEO Leon Topalian emphasized the potential long-term impact of CSP in eliminating speculative buying and creating consistent, transparent published prices.
HRC Market Trends:
Since the launch of the weekly pricing on April 8, the HRC market has seen a prolonged decline due to oversupply and weaker seasonal demand.
The HRC Midwest price has dropped by 180 USD/ton during this period, with the latest assessment at 650 USD/ton ex-works as of July 23. Nucor's weekly CSP has seen a similar reduction.
Nucor's Transparency: Nucor believes that their handling of CSP during the recent price drop has strengthened their credibility. Noah Hanners, Executive Vice President of Plate Products, highlighted the transparency in pricing as a significant achievement.
Customer Feedback and Commitment: Despite the ongoing market weakness, Nucor is pleased with the results and feedback from customers, maintaining its commitment to providing weekly updates.Hanners stated, "I think it’s a longer-term commitment, but we’ve been committed and pleased with our progress on CSP so far. We will be able to achieve success by aligning order intake more closely with underlying demand."
Conclusion
Nucor's continued commitment to publishing weekly spot prices for HRC is an effort to bring more transparency and reduce speculative activities in the market. Despite the challenging market conditions, Nucor is satisfied with the initial results and customer feedback, aiming to provide consistent and reliable pricing information moving forward.
[/tintuc]
Nucor, a prominent U.S. steel manufacturer, has reaffirmed its dedication to publishing weekly spot prices for hot-rolled coil (HRC). This initiative, introduced around 3.5 months ago, aims to reduce speculative buying in the market.
Key Points
Early Days for CSP: Nucor acknowledges that the Customer Spot Price (CSP) is still in its infancy, but views it as a meaningful reference for customers whose needs are driven more by end-market conditions rather than speculation.
Market Impact: CEO Leon Topalian emphasized the potential long-term impact of CSP in eliminating speculative buying and creating consistent, transparent published prices.
HRC Market Trends:
Since the launch of the weekly pricing on April 8, the HRC market has seen a prolonged decline due to oversupply and weaker seasonal demand.
The HRC Midwest price has dropped by 180 USD/ton during this period, with the latest assessment at 650 USD/ton ex-works as of July 23. Nucor's weekly CSP has seen a similar reduction.
Nucor's Transparency: Nucor believes that their handling of CSP during the recent price drop has strengthened their credibility. Noah Hanners, Executive Vice President of Plate Products, highlighted the transparency in pricing as a significant achievement.
Customer Feedback and Commitment: Despite the ongoing market weakness, Nucor is pleased with the results and feedback from customers, maintaining its commitment to providing weekly updates.
Hanners stated, "I think it’s a longer-term commitment, but we’ve been committed and pleased with our progress on CSP so far. We will be able to achieve success by aligning order intake more closely with underlying demand."
Conclusion
Nucor's continued commitment to publishing weekly spot prices for HRC is an effort to bring more transparency and reduce speculative activities in the market. Despite the challenging market conditions, Nucor is satisfied with the initial results and customer feedback, aiming to provide consistent and reliable pricing information moving forward.
