Spot prices, order activity and inquiries may be stable within the US domestic cold rolled coil (CRC) market may be steady since our last report a week ago, but many believe the forecasted downtrend for October scrap prices could lead to price softening in the flats market. Current CRC prices, which have held at approximately $28-$29 cwt. ($617-$639/mt or $560-$580/nt) ex-Midwest mill, may have trouble holding should the forecasted $20-$30/lt drop in scrap prices take place.
In terms of distribution center pricing, Texas-based sources continue to report that a number of places are selling at “well below” replacement cost as a means of moving high-prices inventory off their shelves. Traders say they are still evaluating new offshore sources, although no significant tonnages have been booked as of yet.