Cold Rolled Coil Prices Rush at Higher Offers in the US Market
- 13-Jan-2023 3:34 PM
- Journalist: Francis Stokes
Cold Rolled Coil prices in the US market rose towards the end of the second week of January, as steelmakers kept prices high and Nucor again increased offers. After a slow start following the New Year's holiday last week, Cold Rolled Coil demand has moderately increased, reflecting lower inventory levels in the domestic market. Service centers reported increased buyer inquiries and shipments for Cold Rolled Coil, but only a few are interested in stocking up on Cold Rolled Coil, especially with lead times not pushing out any further than they had previously. Cold Rolled Coil prices increased by approximately USD 43/MT this week, settling at USD 1035/MT. Lead times for Cold Rolled Coil remained at 5-6 weeks.
According to our sources, Nucor announced another USD 50 per MT increase in flat-rolled steel prices on January 9. Steel prices were raised by USD 60 per MT by the steelmaker in late November. This latest increase follows in the wake of a USD 50/MT price increase by Cleveland-Cliffs. According to market participants, the continuous week-over-week cost increases since Cold Rolled Coil prices inverted at the beginning of December indicate an increasingly bullish market. Meanwhile, a few Cold Rolled Coil import offers were noted as prices remained unappealing, particularly as overseas prices rose.
Steelmakers in the US are reportedly charging buyers less in the Southern market and more in the Midwest, owing to import penetration, terminal demand, and cost structure. Buyers claim that the cost structures of southern mills differ from those of midwestern mills. The difference in base prices between the two regions is more than USD 22–33/MT. Electric-Arc Furnaces (EAF) and blast furnace mills coexist in the Midwest. The South has only EAFs, many of which are newer or were built recently.
As per ChemAnalyst, Cold Rolled Coil prices are anticipated to remain stable in the coming weeks. Buyers are concerned that Cold Rolled Coil pricing will continue to fluctuate this year, potentially costing them funds on high-priced inventory in the coming months.
