US CRC prices show signs of stabilization, for now

The recent $1.50 cwt. ($33/mt or $30/nt) price increase by flat rolled steel mills has not yet succeeded in pushing flat rolled steel product spot market pricing, including pricing for US domestic cold rolled coil (CRC) higher, but it has prevented further downticks within the marketplace.

At current, the most commonly heard spot market price range for US CRC remains at $34-$36 cwt. ($750-$794/mt or $680-$720/nt), ex-Midwest mill, unchanged in the past week.  Sources close to SteelOrbis have indicated that “deals below this range are long gone,” one source said, adding that he believes that it may take a second price increase announcement to “force the first price increase into acceptance.”  This belief has become increasingly widespread in the past week. SteelOrbis sources say they believe a second price increase is coming, and that the announcment could come as soon as next week.

It is further believed that prices will soon be going up, “it’s just a matter of when and by how much.”

In terms of offshore offer prices, the currently heard range for US import CRC prices in the domestic market from mills in Thailand continue to be heard at $30-$31 cwt. ($661-$683/mt or $600-$620/nt), DDP loaded truck in US Gulf coast ports, although trader sources have said the bulk of transactions are now taking place toward the higher end of this range.  Trader sources have said offers from mills in Turkey and Vietnam are currently not available.