More adjustments seen in US domestic CRC market

Last week, a number of players within the US domestic cold rolled coil (CRC) market thought that prices may have finally hit bottom; this week, however, the average spot price transaction range has declined by another $1.00 cwt. ($22/mt or $20/nt), inching the current transaction range span down to $29.00-$31.00 cwt. ($639-$683/mt or $580-$620/nt), ex-Midwest mill.

“The dust is still in the process of settling,” according to a Midwest-based source, “but the rapid declines that took place earlier this year seem to have finally reached their end.”  Inventories are still “a little healthier than most people would like,” according to another source, who notes that while demand is still pretty decent, the biggest challenge for the market, as with other flats segments, continues to be “too much steel that doesn’t have a home.”