Will US CRC prices continue to inch higher?

Thursday, 01 December 2016 23:48:53 (GMT+3)   |   San Diego
       

This week, AK Steel, Nucor Sheet Mill Group and ArcelorMittal USA have announced a fourth price increase announcement for all flat rolled steel products, including US cold rolled coil.  In letters sent out on Wednesday and Thursday, Nucor and AK Steel told customers they would be raising prices for all flat rolled steel products by a minimum of $2.00 cwt. ($44/mt or $40/nt), ex-Midwest mill.  AMUSA, however, announced new, a new minimum base price for US CRC, of $41.00 cwt. ($904/mt or $820/nt).

While the latest increase has not yet made its way into the market, prices for US CRC have continued to firm in the past week; today, the most commonly heard spot price transaction range for US domestic cold rolled coil (CRC) has widened by $1.00 cwt. ($22/mt or $20/nt) on the top end since our last report, which brings the current average spot market price transaction range to $37-$39 cwt. ($816-$860/mt or $740-$780/nt), ex-Midwest mill. 

The current top end of the above stated range officially CRC spot prices in line with flat rolled steel mills’ third price increase announcement, which was put out on Nov. 15. At that time, AMUSA indicated to customers they would be setting a new, minimum base price for US CRC of $39.00 cwt. ($860/mt or $780/nt), effective with all new orders.

Sources close to SteelOrbis have said while the continued price firming is not surprising, especially since offshore lead times are “months out, they’re unsure whether the latest price increase will gain full acceptance.

“People aren’t interested in booking 500 tons offshore right now because anything they buy probably won’t get here until the spring,” one source said. “They’d rather place a bunch of smaller orders with the domestic mills because the domestic lead times are trending somewhere between 6 and 8 weeks.”


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