Spot market prices for US domestic cold rolled coil (CRC) have continued to remain level, at $49.50-$51.50 cwt. ($1091-$1135/mt or $990-$1030/nt) ex-mill, but multiple sources close to SteelOrbis question how long the stability will last.
Last week, the US DOC announced they’d be launching an investigation to domestic steel price hikes to determine whether mills were “illegitimately profiteering” from Section 232 tariffs. Yesterday, the American Institute for International Steel (AIIS) and two member companies filed a lawsuit with the Court of International Trade, alleging that the 25 percent tariff violated the constitution.
Although many believe the lawsuit is a longshot, when combined with the virtual laundry list of complaints that have been filed with the World Trade Organization, sources day the tariffs could soon be dealing with a legal minefield.
“It’s impossible to place bets on how any of this is going to work out, because we’re still not sure if the tariffs against Mexico and Canada are just a bargaining chip for NAFTA or whether they’re the new law of the land,” a source said. “I think we could see some additional price firming in the short term, but once imports start to arrive again, all bets are off.”
Speaking of import CRC prices, Turkish CRC in the US domestic market continues to trend between $46-$48 cwt. ($1014-$1058/mt or $920-$960/nt), DDP loaded truck in US Gulf coast ports, while offers from other countries are still trending at $48-plus cwt.