Product
January 16, 2013
SMU Price Ranges & Indices: Top End of Our Range Erosion
Written by John Packard
Flat rolled steel prices continued to drift slightly lower as buyers reported a tighter range than what we had seen one week ago. The top end of the range for all of the items declined between $10 and $20 per ton this past week. The net result being our averages adjusted lower by $5 to $10 per ton depending on the product.
Hot Rolled Coil: SMU Range is $600-$640 per ton ($30.00/cwt-$32.00/cwt) with an average of $620 per ton ($31.00/cwt) fob mill, east of the Rockies. The lower end of our range remained intact while the upper end of our range moved lower by $10 per ton compared to one week ago. Our average has adjusted lower by $5 per ton compared to one week ago. The trend for HR continues to be “Neutral” which essentially means there is no clear cut direction associated with this market. The market is close to making a move below $600 per ton which could change the psychology of the market and push prices lower. Before that happens, the domestic mills may attempt to raise prices in order to prevent a wholesale decline from here. We discuss our reasons for keeping SMU Price Momentum at Neutral as opposed to moving it to Lower in the article below.
