Steel Products

SMU Fair Value Has HRC Spot Pricing Below Fair Value for 2nd Week

Written by John Packard

This week, the SMU Fair Value HRC (hot rolled coil) Model has spot HRC pricing below Fair Value for the second week in a row. This is due to the SMU average spot HRC index remaining unchanged from last week at $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.

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