An early-October price increase announced by US domestic flat rolled steel mills has finally started to gain acceptance. Last week’s range, which was trending between $44-$47 cwt. ($970-$1,036/mt or $880-$940/nt), ex-mill, has firmed by $2.00 cwt. ($44/mt or $40/nt) on the bottom end, which brings today’s average range to $46-$47 cwt. ($1,014-$1,036/mt or $920-$940/nt), ex-mill.
“The deals are gone and if anything, the mills are trying to push things up a bit higher,” a source said.
Another source indicated that interest in booking foreign material has started to increase, due to arrival dates that now span past January 1, which allows clients to avoid paying the year-end inventory tax in some US regions.
Looking offshore, some traders are indicating that US import CRC in the domestic market from Vietnam and Egypt is being offered at around $41.50 cwt. ($915/mt or $830/nt), DDP loaded truck in US Gulf coast ports, while US import CRC in the US domestic market from South Africa and Mexico is still being heard in the range of $43-$44 cwt. ($948-$970/mt or $860-$880/nt), DDP loaded truck in US Gulf coast ports and FOB Texas, respectively.
Service center sources in Texas, however, have indicated that they’ve heard that deals below this range have been available.
It’s also widely held that the Section 232 tariffs will be overturned in the upcoming months and replaced with quotas. Mexico this week said they would not sign any new trade deal with the US unless quotas and tariffs were off the table.