US CRC prices soften alongside hot rolled

The downward pricing trend that’s been seen for US domestic hot rolled coil this week is not unique to that product segment, as US domestic cold rolled coil prices have also shown signs of an adjustment.  There are a number of factors that play into this; first, US CRC prices have long-trended well above offshore offerings, and falling raw materials prices allow US mills a greater sense of wiggle room.  Although US CRC producers are not exactly price matching their offshore counterparts, the question of “how low they need to go to spur interest” has yet to be answered.

Today, the most commonly reported US domestic spot price transaction range has declined by about $1.00 cwt. ($22/mt or $20/nt) to the approximate range of $34.00-$35.00 cwt.  ($750-$772/mt or $680-$700/nt) ex-Midwest mill, although source close to SteelOrbis say that the largest customers with the biggest orders may be able to negotiate deals slightly below that range.