Will the latest US CRC price increase be accepted by the market?

Thursday, 08 December 2016 22:52:34 (GMT+3)   |   San Diego
       

Last week, AK Steel and Nucor Sheet Mill Group announced they would be raising prices on all US flat rolled steel products, including cold rolled coil, by a minimum of $2.00 cwt. ($44/mt or $40/nt), ex-Midwest mill.  ArcelorMittal USA (AMUSA), however, took the announcement one step further and indicated they would be setting a new minimum base price for US CRC, at $41.00 cwt. ($904/mt or $820/nt).

And while the current increase announcement has not yet gained acceptance, prices within last week’s reported range have firmed by $1.00 cwt. ($22/mt or $20/nt) on the bottom end.

Today, the most commonly heard spot market price transaction range to $37-$39 cwt. ($838-$860/mt or $740-$780/nt), ex-Midwest mill. 

It should also be noted that since US domestic scrap prices have, in fact, firmed during the December buy-cycle, SteelOrbis sources believe full acceptance of the CRC price increase is imminent.

“It’s not a matter of if,” one source said. “It’s a matter of when. Especially since scrap has settled up across the board.”


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