Sources throughout the US continue to report that spot market pricing for US domestic CRC continues to trend between $49-$51 cwt. ($1080-$1124/mt or $980-$1020/nt), ex-mill, and many have started to wonder if prices are at or close to their peak.
Early predictions for the domestic scrap market put the May price trend at sideways; if scrap prices remain level, this could make it difficult for mills to push additional price increases onto customers. There is also concern about what will happen with Section 232 exemptions.
“If the tariffs aren’t extended, and offshore mills resume selling at previous price points, this could place downward pricing pressure on the market,” a source said. “But it’s also worth mentioning that ever since Section 232 was announced, people have been concerned about booking offshore, which is bound to cause some tightness in the market in a few months.”
And while booking offshore is currently undesirable, buyers continue to stock up on Mexican CRC, which is still being heard at approximately $50 cwt. ($1102/mt or $1000/nt), FOB Houston.
“The Mexican mills are taking advantage of the current state of the market, and they’re going nuts with shipments while they can,” another source said.