US CRC market sitting at “hot idle”

Players within the US domestic and import cold rolled coil markets all seem to agree on one thing: it’s not a matter of if a trade case will be filed, it’s a matter of when.  Yet in the absence of an early September filing, a handful of traders have showed an increased willingness when it comes to booking Chinese tons.  Some have placed “quick hit” orders into the West Coast while others have booked cargos for January arrival into the Gulf.  There’s also quite a bit of previously ordered product that’s starting to make its way into ports, although there’s mixed speculation as to if and how much those tons will impact the market.  “It’s not like there is this huge tsunami of steel,” according to one Texas-based trader.  “The tons that were booked are mostly accounted for.” Others see a different picture, noting that port warehouse space in both Texas and Los Angeles is quite hard to come by, and feel that’s a good indication that there’s already quite a bit of overhang material that’s arriving at the docks.

In terms of prices, things have remained lateral across the board since our last report a week ago.  The most commonly reported ex-Midwest mill spot price range continues to sit at approximately $38.00-$39.00 cwt. ($837-$860/mt or $760-$780/nt), while futures prices from India and Brazil continue to hold steady as well.