Home > Chemical News

Chemical News

US cold-rolled coil prices rise as steel mills insist on new offer levels

https://www.chemnet.com   Mar 27,2017 Platts
The US cold-rolled coil price assessment edged up on Thursday as limited-time-only deals lower than $860/st evaporated, according to market sources this week.

Spot buying has been light this week, as market sources reported buyers have been hesitant to place orders.

Based on market feedback this week, S&P Global Platts on Thursday raised its daily CRC price assessment to $850-$870/st, up from $840-$860/st on Wednesday.

The hot-rolled coil assessment remained flat at $640-$660/st. Both assessments are normalized to an ex-works Midwest (Indiana) basis.



One service center said he placed a small order of galvanized substrate at $860/st, and other mills are at that level as well. Mills appeared to be holding HRC at $670/st for the most part, but one mill was still offering $660/st.

The service center has not paid for HRC or CRC at these levels though and has been subsisting with small orders from other service centers.

Even though he has not paid these price levels, he is convinced that pricing will be steady around current levels.

"I think everyone is of the impression that the price is pretty much going to stay at the level it is at now," he said.

Another service center source said that buyers are paying $670/st for HRC "only if necessary." However, with the Metals Service Center Institute reporting flat-rolled steel inventories at 2.2 months at the end of February, the service center source said that there are a lot of holes.

For the most part, mills are not willing to negotiate off the $670/st level, he said, and one mill has even been heard offering $680/st.

A trader said Turkish mills have been trying to sell at $600/st on a loaded truck basis in Houston, though he could see slightly lower prices being realized.

"There are not too many alternatives," he said, regarding HRC imports.

CRC is more competitive, considering domestic pricing, however, customers are not buying as much as he would like to see. He has been quoted $750/mt ($680/st) for Turkish CRC on a CFR Houston basis for June arrival, and he would sell at $740-$750/st, he said.

There was a lot of cheap material imported in January, and some of it is still unsold, he said. In January, the US imported 206,101 mt of CRC and had 198,631 mt licensed for import in February, according to Department of Commerce data.
 Print  |    add to Favorites  |    Close