Trader sources say that while they’ve recently received offers for US import CRC from Russia and Vietnam, that they have concerns that the Trump administration’s decision to move forward with Section 232 probe may soon limit their ability to sell foreign steel to US buyers.
Secretary of Commerce Wilbur Ross said that throughout the years, the US has conducted 152 steel cases against improper imports and that another 25 cases are pending.
“The fact is that the domestic industry is only operating at about 71 percent of capacity,” Ross said. “And since the foreign imports are some 26 percent, there clearly is room for increase in the productive utilization in the United States.”
Many within the US steel industry, however, feel strongly that reducing imports won’t lead to higher domestic utilization rates; instead, it’s believed US mills will likely keep production rates level and raise prices.
Trader sources have said they have already started to put cancellation clauses in their contracts. “Depending on what happens with the investigations we may or may not need to cancel our contracts. There’s a lot of uncertainty right now and we think that’s going to push a lot of people to buy domestically.”
In terms of current domestic prices, those continue to be heard at approximately $41.50-$43.50 cwt. ($915-$959/mt or $830-$870/nt), ex-mill, although some mills have been offering “one-time discounts” up to $1.50 cwt. ($33/mt or $30/nt) below that range for volume orders with certain customers.
Pricing for Vietnamese CRC in the US domestic market has been most recently heard at $33-$35 cwt. ($728-$772/mt or $660-$700/nt), DDP loaded truck in US Gulf coast ports, while pricing for Russian CRC in the US domestic market has been most recently heard at $32-$33 cwt. ($705-$728/mt or $640-$660/nt), DDP loaded truck in US Gulf coast ports.