US HRC and CRC transaction pricing takes another hit

As mills scramble to fill already light order books, sales managers continue to have what have been described as "make it happen" meetings with salespeople, encouraging them to do whatever necessary in order to get orders.  But to the same token, demand, while steady, is modest, and dropping prices will obviously not lead to a sudden increase in consumption.  Ultimately, the game is still being dictated by overproduction.

And while pessimism and stark fear of a repeat of 2009 has begun to permeate, there are still those who are taking a more optimistic tone. "Business isn't that great, but it's not as ugly as some would lead you to believe," commented one trader.  "Demand is slowly but surely getting better, but oversupply is still the major challenge." 

Looking to imports, offerings of both HRC and CRC out of Mexico, as well Russian offerings of HRC, have trended downward since our last report.  India has also reemerged into the CRC market, although their most current offerings are still no match for current domestic offers, unless buyers feel the end of the pricing downturn is near, which does not yet seem to be the case.  Further, while revised Chinese offerings have not yet solidified, it is anticipated that they will fall into the same range as the Indian offering price.

*Mexican offers are duty-paid FOB loaded truck delivered to US border states.

** Russian and Indian offerings are duty-paid FOB loaded truck, US Gulf ports.