US CRC market quiets into Christmas holiday

The US domestic and import cold rolled coil (CRC) markets seem to be rocking steady into the New Year, as order placement, activity and market happenings are falling seasonally silent.

“A lot of people have already started their year-end holiday vacations,” according to one Midwest-based source. “So the fact that there are just a handful of people left in any office is having a hand in all this.” Concerns about a downward pricing trend into 2015, however, are still in the backs of everyone’s minds. Yet that’s not to say there aren’t any bright spots.  First quarter arrivals are likely to be scant compared to previous months; last summer, many people stepped away from the futures markets out of fear of an imminent trade case.  Although that alone is likely not enough to keep CRC prices stable, sources say it certainly can’t hurt.

In terms of pricing, that has held steady since our last report a week ago.  Futures offers continue to hold steady, while US domestic spot price transactions continue to trend at $35.00-$36.00 cwt. ($772-$794/mt or $700-$720/nt) ex-Midwest mill.

Import pricing is also placing pressure on US domestic offers, as Brazilian producers have revised pricing to meet Chinese offers; Russian mills have also jumped into the market and are offering in a similar range.  Although Indian offer prices haven’t been officially revised, sources indicate they’re open to negotiation based on tonnages.