This week, the SMU Fair Value HRC (hot rolled coil) Model has spot HRC pricing above Fair Value for the ninth week in a row. This is due to the SMU average spot HRC index decreasing $10 per ton to $625 per ton and scrap inputs remaining the same over last week’s figures. The Fair Value model now shows HRC prices $2 above the estimated Fair Value price.
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.
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