Sources close to SteelOrbis report that soft and still-wobbly domestic sheet steel prices have buyers “less inclined” to book tons offshore.
“Domestic and import [prices] are within spitting distance of one another, and buyers just don’t see a lot of value in buying import, and waiting months for it to arrive, when domestic prices are so close,” a source said.
For example, whereas US import HRC from Mexico and Europe are trending at $32-$34 cwt. ($705-$750/mt or $640-$680/nt), FOB Texas and DDP loaded truck in US Gulf ports, respectively, as of Friday of last week, the average range for US domestic HRC was trending at $34-$37 cwt. ($750-$816/mt or $680-$740/nt), FOB mill. Deals up to $1.00 cwt. ($22/mt or $20/nt) below that range have been heard within the marketplace.
Additionally, whereas US import offers CRC from Europe, Brazil, and Mexico are being heard at $43-$45 cwt. ($948-$992/mt or $860-$900/nt) DDP loaded truck in US Gulf coast ports and FOB Texas, respectively, also as of last Friday, domestic CRC was trending at $47-$49 ($1,036-$1,080/mt or $940-$980/nt), FOB mill.
“That may be the official domestic price range but anyone who is worth salt and has a decent sized order can do at least $3 cwt. ($66/mt or $60/nt) better than that,” another source added.
Sources continue to report a belief that US prices could continue to soften before the end of the year.
“If that happens I imagine imports will become less attractive than they already are,” a third source concluded.
According to October 31 data from the Department of Commerce, preliminary census data from September notes that the US imported 800,389mt of flat rolled carbon steel from global sources, against 1,185,979mt (census data) in January.