-Prices and mill books are weakening as predicted. Mill salesmen are actively looking to fill “holes” in supposedly strong order books. There is a disparity between producers – those who are heavily automotive and/or OCTG and those who are not.
– Pricing in northern Europe has firmed up as of late and the gap between USA and EURO pricing has closed significantly – especially with prices easing in the USA. China is soft but stable.
-We expect average HRC pricing to fall to $680-700 within the next week.
-For now the EURO has stabilized against the Dollar and hovers around $1.30. Expectations continue for the scrap market to be weak for the next several weeks.
-If USA HRC reaches $640-$660 look for buying opportunities to arise as demand is fairly strong and at these levels, import will make less sense. Currently we expect prices to dip for March/April and May and then rally into the second half of the year.
-The CRU index is currently well behind the actual domestic market