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    CRU

    CRU: Scrap prices hit by weak demand offsetting tight supply

    Written by Puneet Paliwal


    The CRUmpi declined by 1.7% month over month (m/m) to 325.2 in February, compared to a 4.3% m/m increase in February 2023. This is the CRU metallics price indicator, and is derived from steel scrap, pig iron and DRI/HBI price assessments.

    Supply decreased for both scrap and pig iron due to seasonal factors, but availability remained ample amid tepid demand in a challenging steel market. Metallics prices showed more resilience in the European market compared to the US and Asia as suppliers resisted price reduction citing higher cost pressure. Meanwhile, ongoing shipping disruptions in the Red Sea continue to impact scrap trade between Europe and Asia.

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    CRU: HR coil futures re-price 2027 forward curve

    CME Group’s hot-rolled coil futures have jumped higher as the loss of a reheating line at a large Southern mill have renewed domestic production issues. At market close on Oct. 12, the Q4'26 futures are now pricing in $1,295 per short ton (st) for HR coil, a month-over-month (m/m) increase of $63/st. For 2027, the forward curve is up $80 /st vs. September, at $1,207/st. For November 2026 through March 2027, prices are at an average just above $1,300/st.