Spot market prices for US domestic cold rolled coil have started to soften since our last report a week ago, from a range of $42.50-$44.00 cwt. ($937-$970/mt or $850-$880/nt), ex-mill, to an average transaction price of $42.50 cwt. ($937/mt or $850/nt).
The current price point is relatively consistent with prices one year ago; on January 11, 2018, SteelOrbis reported that the most commonly heard price range for US CRC was trending between at $41-$43 cwt. ($904-$948/mt or $820-$860/nt), ex-mill.
Many within the market believe the current downtrend is directly tied to soft January scrap prices. Earlier today, SteelOrbis reported that scrap settled down between $30-$35/gt, depending on the region and grade.
“Prices are soft across the board for flat rolled steel,” a source said. “The question that has yet to be answered, is how much downward pressure the market can endure.”
Although it was largely speculated that US domestic flat rolled steel mills would announce a price increase during the first week of the year, any such increase has yet to materialize. Market participants also believe that if an increase is announced, it would be more about preventing prices from eroding further, “as opposed to moving the needle north.”