Steel Products
HRC Spot Pricing Falls Below SMU Fair Value Model as Spot Prices Slip
Written by John Packard
February 18, 2013
This week, the SMU Fair Value HRC (hot rolled coil) Model has spot HRC pricing back below Fair Value for the first week after rising above the Fair Value price the week before. This is due to the SMU average spot HRC index decreasing $10 to $610 per ton and scrap inputs remaining the same. The Fair Value model now shows HRC prices $6 below 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.
John Packard
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