US CRC prices forecast to firm in the wake of flats mills’ latest price increase

Thursday, 12 January 2017 22:30:00 (GMT+3)   |   San Diego
       

US flat rolled steel producers have announced a fifth price increase on all sheet steel products, including US domestic cold rolled coil (CRC).

AK Steel and NLMK USA told customers they would be raising US domestic CRC spot market prices by $2.00 cwt. ($44/mt or $40/nt), effective immediately.  Nucor told customers they would be raising US CRC prices by $1.50 cwt. ($33/mt or $30/nt). And while AK Steel, NMLK USA and Nucor did not announce new, minimum base-pricing, ArcelorMittal USA told their customers they were setting a new minimum base price of $42.50 cwt. ($937/mt or $850/nt).

In terms of how this has impacted current spot market pricing, sources close to SteelOrbis have said that spot market prices have risen by $1.00 cwt. ($22/mt or $20/nt) on the top end since our last report a week ago.

This brings the current average spot market price range to $40-$42 cwt. ($882-$926/mt or $800-$840/nt), ex-Midwest mill, although one source said that buyers looking to book limited tonnage “are likely paying about $0.50 cwt. ($11/mt or $10/nt) higher than that.

The current price point is a vast improvement over mid-January 2015, when SteelOrbis reported that US domestic CRC prices were trending at $24.50-$26.50 cwt. ($540-$562/mt or $490-$510/nt), ex-Midwest mill.

Lead times are currently trending between six and eight weeks, another source said, adding that firmed scrap prices, and optimism regarding the economy and trade policy under soon-to-be President Trump, have many within the US steel industry feeling a sense of renewed market optimism


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