While many in the US domestic CRC market expected another mill price increase after final determinations in the trade case against China and Japan came out in favor of domestic producers, few expected the increase to be as sizable as the one announced by USS-POSCO today.
The effective-immediately $7.50 cwt. ($150/nt or $165/mt) price increase goes for HRC and HDG as well, but sources say it's too soon for such a tremendous price jump to have an impact in the market, as the reaction from customers overall remains to be seen. So for now, the spot price transaction range US domestic CRC will remain at $39-$40 cwt. ($860-$882/mt or $780-$800/nt) ex-Midwest mill, but a clear picture of the market should emerge within days.
As mentioned, the US Department of Commerce issued its final antidumping margins against US import CRC from Japan and China this week. The final AD margins against US import CRC from China were set at 265.79 percent; final AD margins against US import CRC from Japan were set at 71.35 percent.
But it's not only imports that likely led to the price increase. Lead times are spanning between 8 and 12 weeks, sources say, adding that a number of mills are trying to increase their focus on contracts, as opposed to spot market business.