SteelOrbis has learned that US traders are still offering imported cold rolled coil (CRC) from Europe at approximately $95 cwt. ($2,094/mt or $1,900/nt), DDP loaded truck in US Gulf coast ports. Sources have also indicated that traders are also offering imported CRC from Taiwan at “just below” $90 cwt. ($1,984/mt or $1,800/nt), FOB mill.
In contrast, US domestic CRC prices are now being heard in the range of $100-$105 cwt. ($2,205-$2,315/mt or $2,000-$2,100/nt), FOB mill. Lead times are being heard in a range of 9-12 weeks, depending on the mill of origin.
“Offshore [CRC] is looking more and more attractive with each passing week,” a source said, noting that he believes that the US is about to see a significant uptick in import tonnages. On the other hand, several notable economists have said they believe that US sheet steel prices are likely retreat “significantly” in the upcoming months as new capacity comes online. And while some believe the correction could come “fast and swift” in the final months of the year, others are less bearish and believe that while prices will correct, the correction will not be as significant as what’s feared.
“There’s a lot of disagreement within the market in terms of how this will play out,” a final source added. “Suffice to say, we won’t know how this will play out until it happens.”