Prices
May 4, 2014
Written by John Packard
Steel Market Update follows a number of price indices on a weekly basis. All of the indices saw double digit increases during the month of April. The average change on hot rolled was +$43 per ton, cold rolled +$47 per ton, galvanized +$66 per ton and Galvalume +65 per ton. Plate prices remained relatively stable only increasing by +$2 per ton during the month.
This Premium analysis examines oil and natural gas prices, drill rig activity, crude oil stock levels, and fuel prices through May.
Domestic plate market participants named extended lead times, increased freight costs, escalating fuel surcharges, and spotty demand as their most recent challenges.
After a brief dip last month, iron ore prices have resumed their upward trajectory as the war in the Middle East escalates. Elevated costs have established a new pricing norm, keeping iron ore prices firm even as current levels exceed what supply‑demand balance would justify. Meanwhile, Simandou is finally gaining momentum after a slow start. Quality remains the decisive factor for steelmakers sourcing from the seaborne market, reshaping trade flows.
Sheet prices continue to rise in a market that remains characterized by extremely limited spot availability, solid demand, long lead times, and the lowest sheet inventories since May 2021.
Nucor Plate Group will maintain its previously announced fuel surcharge of $10 per short ton for next month, effective on all shipments beginning June 1.