US Steel Newsreel - Issue 7
Freight Investor Services
Leading global brokerage in freight and commodities
02/25/25 - This is a strong update on the HRC market. The key takeaways are:
????????????Price Hikes: CLF raised its April spot price to $900, a $100 jump from December, while Nucor followed with a $40 hike to $860.
????????????Market Strength: Spot physical prices have risen sharply since Jan 20th, with Platts, SMU, and CRU all reporting gains of over $100/t.
????????????Futures Surge: March HRC futures climbed from $783 to $914, and June from $808 to $933, with Open Interest increasing nearly 9% to 799,780 tons.
????????????Limited Mill Flexibility: Only 21% of mills are open to negotiation, signalling the tightest spot pricing environment in nearly two years.
????????????Tariff Impact: President Trump reaffirmed that 25% tariffs on Mexican and Canadian steel will go forward as planned (March 4th for Mexico/Canada, March 12th for all steel/aluminium). This has driven a wave of physical and futures buying.
The market remains highly reactive to tariff headlines, and with lead times extending into April, buyers face limited options. Watching how the tariff announcements unfold in early March will be critical for near-term direction.
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