Spot market prices for US domestic CRC are still trending in the range of $35-$37 cwt. ($772-$816/mt or $700-$740/nt), ex-mill, although economic woes tied to COVID-19 have many in the market concerned.
“We think that CRC could dip by another $1.50 cwt. ($33/mt or $30/nt) in the second quarter, and that Q3 pricing could come down by $4.00 cwt. ($88/mt or $80/nt) from where things are today,” a source noted.
“It’s our expectation that the coronavirus slowdown will last into early May, at least, and if it lasts longer, the long-term potential for damage to the steel market could be significant,” another source added. “Manufacturing projects are slowing due to a growing number of stay-at-home orders, and that has the potential to throw a huge wrench in demand.”
Another source agreed, noting that the landscape continues to change quickly. “Everything is changing so fast. I’m not going to put my money on what worse-case scenario could pan out. All worse-case scenarios are in play.”