In a significant market development, Nucor has announced its latest price increase, effective March 3, 2025. The company’s Consumer Spot Price (CSP) for hot-rolled coil (HRC) has surged to $900 per short ton for all producing mills, except for California Steel Industries (CSI), where the CSP HRC base price will be $960 per short ton. This marks a substantial jump from the previous price point and aligns Nucor’s pricing with Cleveland-Cliffs’ recent aggressive moves.
Nucor’s 2024–2025 Price Trajectory Update
| Date | HRC Base Price | Increase | Cumulative Change (vs. July 2024) |
|---|---|---|---|
| July 29, 2024 | $675/st | – | Baseline |
| August 5, 2024 | $690/st | +$15 | +2.2% |
| August 26, 2024 | $710/st | +$20 | +5.2% |
| January 21, 2025 | $760/st | +$50 | +12.6% |
| February 3, 2025 | $775/st | +$15 | +14.8% |
| February 10, 2025 | $790/st | +$15 | +17.0% |
| February 17, 2025 | $820/st | +$30 | +21.5% |
| February 24, 2025 | $860/st | +$40 | +27.4% |
| March 3, 2025 | $900/st | +$40 | +33.3% |
This latest increase of $40 per short ton represents a 4.65% rise from the previous week’s price and a staggering 33.3% increase since July 2024. The rapid succession of price hikes reflects the dynamic nature of the steel market and Nucor’s responsive pricing strategy.
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Factors Driving the Price Surge
Several key factors contribute to this unprecedented price increase:
- Raw Material Costs: Scrap prices have been on an upward trajectory, reaching $349/ton as of early February, up $9 from the previous week.
- Policy Impacts: The impending reimposition of Section 232 tariffs, set to take effect on March 12, 2025, is creating market uncertainty and driving domestic prices upward.
- Demand Resurgence: Strong order books reported by major steelmakers like Cleveland-Cliffs indicate robust demand, particularly from automotive and construction sectors.
- Supply Chain Adjustments: With potential disruptions to international steel flows, domestic producers are positioning themselves to meet increased local demand.
Market Implications
This price increase aligns Nucor with Cleveland-Cliffs’ pricing strategy, which had previously set the market high at $900/ton for April contracts. The synchronization of prices among major producers suggests a consolidated industry response to market pressures and opportunities.
For downstream industries, particularly automotive and construction, this price hike could lead to significant cost pressures. Manufacturers and contractors may need to reassess their pricing strategies and project budgets to account for these increased input costs.
Conclusion
Nucor’s latest price increase to $900/ton for HRC (and $960/ton for CSI) represents a pivotal moment in the 2025 steel market. As the industry continues to navigate through policy changes, demand fluctuations, and raw material cost increases, stakeholders across the supply chain will need to remain vigilant and adaptive. The coming weeks will be crucial in determining whether these price levels are sustainable and how they will impact various sectors of the economy.
If you enjoyed this article check out some of our other recent articles on the subject:
- Trump’s 25% Steel Tariffs: Economic Impacts, Industry Effects and Global Trade Shifts
- Nucor Announces Another Price Increase
- Nippon Steel’s Strategic Pivot in U.S. Steel Acquisition Under Trump Administration
- Housing and Construction Market Update: Key Drivers of Steel Demand
- Cleveland-Cliffs and Nucor Announce Price Increases
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