US cold-rolled steel coil prices slumped further Wednesday, however mills were looking to stop the backslide with the announcement of a $30/st price increase on sheet products, according to market sources.
The daily Platts TSI CRC assessment was calculated at $782.75/st, down $9.75 from Tuesday.
A US mill reported two sales at $780/st this week, however others were said to still be targeting transactions above $800/st. A US domestic trader said current pricing was around $780/st before the increase announcement Wednesday, but said that it was likely buyers could book at $760/st with a decent volume.
Cold-rolled demand has been tepid this week, he said.
"[It is a] very sleepy market still," he said.
CRC and galvanized substrate offer prices remain in a wide range, a service center source said.
"CRC and galv are all over the board, but I think they are getting close to running out as the mills that wanted to move out of December are getting close," he said.
Demand also has softened week over week in the hot-rolled coil market, he said.
"Buyers have pulled back, waiting for numbers to fall more," he said.
"Mills are cocky though that demand is pent up and will lead to a good first quarter. [We] just have to get through December."
The daily Platts TSI HRC assessment was calculated at $609.50/st Wednesday, up $2.25/st. A US mill reported selling 440 st at $611/st this week. Buy-side sources put current offers, before the increase, in the range of $600-$620/st, but the service center source said at least one mill was heard to be offering below $600/st.
A number of US mills on Wednesday announced a $30/st increase on sheet products to take effect immediately, though it was unclear Wednesday afternoon how much traction the higher pricing would get in the market.
"It just needs to get activity up enough to get them through the year-end," the service center source said.
A second service center source said he believed the increase announcement was premature, but was encouraged to see so many mills joining the increase early on. Waiting another week or two would have shifted the conversation in the market from "if" the increase would stick, to "how much" of the increase will stick, he said.
"I still think it is premature, but it is impressive that there are a lot on the bandwagon early this time," he said.
The combined Platts TSI price indicies use a volume-weighted average calculation -- according to TSI's standard -- to determine value on an ex-works Indiana basis.
