US CRC prices increase fails to move the market

Thursday, 07 February 2019 22:26:35 (GMT+3)   |   San Diego

Last week’s mill price increase announcements have failed to push US domestic CRC spot market prices higher. Current prices are still trending in the range of $39-$41 cwt. ($860-$904/mt or $780-$820/nt), ex-mill, which reflects no change from price points seen before the announcements were made.

Order activity remains stable, sources note, adding that US scrap prices are, for the most part, trading sideways. In the absence of a major jump in scrap prices, or a marked increase in order activity, sources say “the fundamentals for higher prices simply aren’t there.”

Looking offshore, the most recently heard offers for US import CRC in the domestic market from Russia and Vietnam were last heard in the range of $39-$40 cwt.  ($860-$882/mt or $780-$800/nt), DDP loaded truck in US Gulf cost ports; prices from Mexico are also still being heard in that same range, FOB Texas. Although Mexican CRC is attractive based on lead times, buyers are reluctant to book large tonnages from offshore producers, as prices are on par with domestic offerings.

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