Last week, SteelOrbis reported the average spot market price for US domestic cold rolled coil (CRC) was still hovering at approximately $38.00 cwt. ($837/mt or $760/nt), ex-mill, with a strong belief that mills would try to push spot market prices above $40 cwt. ($882/mt or $800/nt), ex-mill.
Today, the current transaction range has firmed slightly, to an average of $38.00-$39.00 ($838-$860/mt or $760-$780/nt), ex-mill. Yesterday, in mills’ effort to underscore their desire to get spot market prices above $40 cwt. ($882/mt or $800/nt), ex-mill, mills rolled out yet another $1.50 cwt. ($33/mt or $30/nt) price increase announcement.
However, market players throughout the US question how much sticking power the increase will have. Early indicators suggest that domestic scrap prices may have peaked and could trend soft sideways during February’s buy cycle. That, coupled with unexciting end-use demand, has many wondering whether higher US CRC prices will be sustainable in the long-term.
“The mills are sending up some trial balloons, but a lot of people think the mills are greedy and they’re asking for too much too soon,” a source said. “At root, [market] fundamentals aren’t that great. It’s like if I had a car that I wanted to sell, and saw that at the current moment, not many people are buying cars. The idea that this would be the perfect time to raise my selling price, wouldn’t make sense.”
Looking offshore, sources have confirmed that US import CRC from Vietnam is currently being offered at $38.00 cwt. ($838/mt or $760/nt), DDP loaded truck in US East coast ports. It has futher been confirmed that large distributors are selling existing, on-the-ground material at approximately $1.00 cwt. ($22/mt or $20/nt) below that price point, ex-warehouse.