The situation within the US domestic CRC market largely mirrors what was seen last week. Mills’ second price increase has yet to gain traction, and although mills are still “quoting” orders at $37 cwt. ($816/mt or $740/nt), sources have said they have yet to encounter anyone who is paying that.
“Program buys are still happening at $32-$34 cwt. ($705-$750/mt or $640-$680/nt), ex-mill,” sources said, noting that non-program spot market transactions are hovering at $35 cwt. ($772/mt or $700/nt), ex-mill.
Also as with last week, import material from Mexico, Australia and Korea is also available at approximately $32 cwt. ($705/mt or $640/mt), FOB Texas and DDB loaded truck in US Gulf coast ports, whereas offers for Vietnamese material are being heard at a $1.00 cwt. ($22/mt or $20/nt) higher. There has also been talk about offers for Russian material, for August/September arrival, that are coming in at $29.50 cwt. ($650/mt or $590/nt), DDP loaded truck in US Gulf coast ports.
“The Russian number is absolutely insane, because if there is a tidal wave of cheap imports, that could hurt domestic pricing,” a source said. However, another source added that whether “cheaply priced imports” will arrive as a tidal wave, or more of a “small ripple” has yet to be determined, “because there are still a lot of buyers who are reluctant to stock their shelves with cheap imports at the end of Q3, when no one has any idea what end-of-year demand could look like. That could bode poorly for service centers’ year-end-inventory-tax.”