Steel Products Prices North America
SMU Price Ranges & Indices: “Fluid” Pricing Up Substantially
Written by Brett Linton
December 8, 2020
Flat rolled and plate steel prices continue to be quite fluid based on the analysis of the data from Steel Market Update’s survey of the market this week, as well as individual channel checks with both buyers and sellers. By “fluid,” we mean we are capturing variances in prices over a short period of time. Prices that may have been available on Thursday and Friday of last week may well not be available this week.
Steel buyers report situations where the steel mills are either not quoting certain products or are allocating products (controlled order entry). One steel buyer earlier this week described a situation where their main supplier offered them tonnage at “X” price, but the price was only good for a few short hours. They managed to get the mill to agree to 24 hours and did place the tonnage.
We expect prices to continue to rise as supplies remain tight and lead times extended. As spot hot rolled prices hit $900 per ton (which we are already seeing at the high end of our range), we will be at levels only seen twice in the history of our index (2008 and 2018). In the past, such peaks have been followed by sharp and prolonged drops in prices. Steel buyers are nervous about overpaying or buying at the peak of the market. This may actually help keep prices high as inventories will remain tight.
Here is how we see prices this week:
Hot Rolled Coil: SMU price range is $820-$910 per net ton ($41.00-$45.50/cwt) with an average of $865 per ton ($43.25/cwt) FOB mill, east of the Rockies. The lower end of our range increased $50 per ton compared to one week ago, while the upper end increased $70. Our overall average is up $60 from last week. Our price momentum on hot rolled steel is Higher, meaning prices are expected to rise in the next 30 days.
Hot Rolled Lead Times: 5-10 weeks
Cold Rolled Coil: SMU price range is $960-$1,020 per net ton ($48.00-$51.00/cwt) with an average of $990 per ton ($49.50/cwt) FOB mill, east of the Rockies. The lower end of our range increased $20 per ton compared to last week, while the upper end increased $40. Our overall average is up $30 per ton from one week ago. Our price momentum on cold rolled steel is Higher, meaning prices are expected to rise in the next 30 days.
Cold Rolled Lead Times: 6-12 weeks
Galvanized Coil: SMU price range is $980-$1,020 per net ton ($49.00-$51.00/cwt) with an average of $1,000 per ton ($50.00/cwt) FOB mill, east of the Rockies. Both the lower and upper ends of our range increased $40 per ton compared to one week ago. Our overall average is up $40 from one week ago. Our price momentum on galvanized steel is Higher, meaning prices are expected to rise in the next 30 days.
Galvanized .060” G90 Benchmark: SMU price range is $1,049-$1,089 per ton with an average of $1,069 per ton FOB mill, east of the Rockies.
Galvanized Lead Times: 8-13 weeks
Galvalume Coil: SMU price range is $980-$1,060 per net ton ($49.00-$53.00/cwt) with an average of $1,020 per ton ($51.00/cwt) FOB mill, east of the Rockies. The lower end of our range remained unchanged compared to last week, while the upper end increased $60 per ton. Our overall average is up $30 per ton from one week ago. Our price momentum on Galvalume steel is Higher, meaning prices are expected to rise in the next 30 days.
Galvalume .0142” AZ50, Grade 80 Benchmark: SMU price range is $1,271-$1,351 per ton with an average of $1,311 per ton FOB mill, east of the Rockies.
Galvalume Lead Times: 8-12 weeks
Plate: SMU price range is $740-$800 per net ton ($37.00-$40.00/cwt) with an average of $770 per ton ($38.50/cwt) FOB delivered to the customer’s facility. The lower end of our range remained unchanged compared to one week ago, while the upper end increased $20 per ton. Our overall average is up $10 from last week. Our price momentum on plate steel is Higher, meaning prices are expected to rise in the next 30 days.
Plate Lead Times: 6-8 weeks
SMU Note: Below is a graphic showing our hot rolled, cold rolled, galvanized, Galvalume and plate price history. This data is available here on our website with our interactive pricing tool. If you need help navigating the website or need to know your login information, contact us at info@SteelMarketUpdate.com.
Brett Linton
Read more from Brett LintonLatest in Steel Products Prices North America
US HR prices rebound, no longer near parity with imports
US hot-rolled coil and offshore hot band moved further away from parity this week as stateside prices have begun to move higher in response to mill increases.
Galvanized buyers report solid demand, balanced inventories
Galvanized buyers reported solid demand and balanced inventories this week and were anticipating the sheet price increase announced by Cleveland-Cliffs on Wednesday.
HRC vs. CRC price spread jumps in second week of new year
The spread between cold-rolled coil (CRC) and hot-rolled coil (HRC) prices jumped during the week of Jan. 8 as cold rolled tags continued to rise while hot rolled tags held steady.
Cliffs increases sheet prices again, seeks $1,150/ton HRC
Cleveland-Cliffs is now targeting base prices of $1,150 per ton for hot-rolled coil (HRC), according to a press release on Wednesday morning, Jan. 3.
Cliffs moves sheet prices higher, seeks $1,100/ton HRC
Cleveland-Cliffs is now targeting base prices of $1,100 per ton ($55 per cwt) for hot-rolled coil (HRC).