Steel Products
HRC Spot Pricing Below SMU Fair Value for 4th Week
Written by John Packard
March 11, 2013
This week, the SMU Fair Value HRC (hot rolled coil) Model has spot HRC pricing below Fair Value for the fourth consecutive week after rising above the Fair Value price in the week of February 8th. This is due to the SMU average spot HRC index increasing $5 per ton last week to $605 per ton and scrap inputs increasing $30 to $45 per ton for the month of March. The Fair Value model now shows HRC prices $48 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
Read more from John PackardLatest in Steel Products
US CR price gains ground on imports
The price gap between US cold-rolled (CR) coil and offshore product is a bit broader this week despite slightly lower tags stateside. The premium is still widening since falling to a 10-month low in late July.
Rig count update: US count rebounds, Canada’s slips
Oil and gas drilling activity in the US recovered the week ended Sept. 13, but remains near multi-year lows.
Plate report: Prices getting closer to pre-Covid norms
The US plate market finds itself in unfamiliar territory, well maybe unfamiliar territory for this side of the post-Covid “normal,” that is.
SMU survey: Buyers report mills still willing to negotiate prices
Negotiation rates have edged lower from our previous market check, a downward trend witnesses since July.
USS introduces ‘ZMAG’ coated steel to withstand tough weather
U.S. Steel has rolled out “ZMAG,” a flat-rolled coated steel product intended to endure harsh weather conditions.