Steel Products
SMU Fair Value Model Has Hot Rolled Coil Spot Pricing Above Fair Value for 8th Week
Written by John Packard
January 7, 2013
This week, the SMU Fair Value HRC (hot rolled coil) Model has spot HRC pricing above Fair Value for the eighth week in a row. This is due to the SMU average spot HRC index remaining the same at $635 per ton and scrap inputs remaining the same over last week’s figures. The Fair Value model now shows HRC prices $12 above the estimated Fair Value price.
Based on our sources, SMU expects scrap prices to vary by region, with early indications being the Midwest and South scrap prices as trending sideways and the East trending slightly higher by as much as $10 per gross ton.
As a reminder, the Fair Value HRC Model below came from the SMU acquisition of Steel Reality. The graph below demonstrates the relationship between scraps inputs creating an estimated “Fair Value” for HRC versus the actual spot price.
John Packard
Read more from John PackardLatest in Steel Products
Active rig counts slipped in US, Canada
Drilling activity slowed in the US and Canada last week, according to the latest oil and gas rig count data released by Baker Hughes.
OCTG producers in Canada take aim at Mexico, US, others
Evraz NA and Welded Tube of Canada have lodged an unfair trade complaint against imports of OCTG, including those from USMCA trading partners Mexico and the US.
Final Thoughts
The difference: The spat with Turkey was a big deal for steel. This time, the 50% reciprocal tariff for Brazil – if it goes into effect as threatened on Aug.1 – hits everything from coffee and to pig iron. It seems almost custom-built to inflict as much pain as possible on Brazil.
CRU: US rebar and wire rod prices rise alongside S232 increase
CRU Senior Steel Analyst Alexandra Anderson discusses current market and pricing dynamics for long steel products in the US.
CRU: Excessive global supply could hit rebar mill investments in US
Following the onset of the war in Ukraine in March 2022, concerns about import availability and expectations of rising demand from President Biden’s Infrastructure Bill pushed US rebar prices to record highs. In response, a flurry of new mills and capacity expansions were announced to meet the rise in demand from growth in the construction […]