Prices for US domestic CRC continues to hold at $49-$51 cwt. ($1080-$1124/mt or $980-$1020/nt), ex-mill, and multiple sources close to SteelOrbis say they believe that current price points will remain neutral for the remainder of the month. Lead times are also stable, at approximately 6 to 12 weeks.
One wildcard, sources say, continues to be the Trump administration’s final decision with regard to Section 232 quotas and tariffs, which is expected to be rendered by June 1.
The question as to whether Mexico and Canada will remain exempt from both has yet to be answered.
The second wildcard relates to the upcoming Mexican presidential election, which will take place on July 1, since the result of the election could have a significant impact on NAFTA negotiations.
Current frontrunner Andres Manuel Lopez Obrador is largely campaigning on a platform that includes reducing Mexico’s economic dependence on foreign powers. In April, Lopez Obrador was quoted as saying he intended to “put Donald Trump in his place” should he win.