Additional price firming seen within US CRC spot market

The most commonly reported spot price transaction range for US domestic cold rolled coil (CRC) has endured additional price firming since our last report a week ago, as average transaction price ranges are up approximately $0.50 cwt. ($11/mt or $10/nt) week-on-week.

The new range, according to market sources, is now trending at approximately $25.00-$27.00 cwt. ($551-$595/mt or $500-$540/nt), ex-Midwest mill.  Lead times have also started to span out, with the average trending between six and eight weeks depending on the originating mill.

Order activity continues to remain brisk, according to sources, due to pent-up demand that relates to unexciting order activity within the fourth quarter.  Another factor relates to still-thinning inventories, which has a number of buyers placing orders in order to fill inventory gaps. 

In terms of offshore activity, Turkish and Vietnamese cold rolled coil (CRC) is still being offered to the US at a sales price that is trending approximately $3.00 cwt. ($66/mt or $60/nt) below US offer prices, but trader sources say last week’s domestic price increase announcement has not led to any marked upticks in interest in booking offshore.