Spot market prices for US domestic cold rolled coil have softened by an additional $0.50 cwt. ($11/mt or $10/nt) since our last report a week ago—despite an early-October attempt by flat rolled steel mills to push prices up.
Sources have confirmed that today’s average spot market price transaction range is trending at $44-$47 cwt. ($970-$1,036/mt or $880-$940/nt), ex-mill. Once source close to SteelOrbis indicated that their company made a buy for “significant tonnage from one of the domestic mills, at a very big discount from the pricing you’re seeing today.”
Market players say that buyers are taking things one day at a time, noting that most believe that the market has bottomed, but that there are no immediate signs pointing to an upswing. In the absence of thinking prices are about to shoot up, many are only buying what they need, when they need it, as opposed to stocking up before the end of the year.
Looking offshore, traders have noted that US import CRC in the domestic market from Vietnam, Egypt is being sold 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 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.
However, today’s news that South Africa has won exemptions from Section 232 tariffs for a variety of steel products, including CRC, could have an impact on import offers from that country by next week. Specifically, it is likely that South African producers will offer prices just below the lowest competitive price, instead of dropping offers by 25 percent.