U.S. market more active in closing deals

The U.S. import market showed a shift last week. “We’re not seeing frantic demand or a price rally, but the market is more active, with more inquiries and interest,” summarized a regional trader. For Argentine product, bids have gone up to US$ 5,200/t CIF for 90 CL. “It’s interesting to see how round cuts have surged in the U.S. over the past two or three weeks. That opens a more positive outlook for when inventories run out,” he noted. This interest was reflected in inquiries for knuckle, flat, or topside, for example. “The reality is that without quota, prices still can’t compete with China,” he admitted.

Meanwhile, a Paraguayan exporter felt that the US$ 5,200/t CIF being offered for 90 CL “was not an attractive price.” “Demand is a bit more insistent, but it’s still not enough to close deals,” he summarized. A broker estimated the current U.S. price for 90 CL at closer to US$ 5,000/t.