Steel Products Prices North America

SMU Price Ranges & Indices: It's a Long Slippery Slope

November 10, 2015

Flat rolled steel prices continued their months long swoon as steel buyers confided in Steel Market Update that lower prices/offers are available for those who actually have tonnage to sell. One service center executive told us today, “We are getting offers for HR at around the $360NT price. I see a lot of material still floating around and prices keep getting lower each day. Customer demand is remaining weak with little inquiries for new items. Small releases at a about half of what was released last year this time. Most people are extremely cautious and even when we have come across some great buys, in this market, we are having difficulty getting anyone to bite on them.”

A large end user told us today that the $18.00/cwt-$18.50/cwt base prices are available for just about all the mills and that they were not placing any foreign orders, “I haven’t looked at the import numbers because I just don’t have tons to buy from them.”

Our SMU Price Momentum Indicator continues to point toward lower prices. We are of the opinion that we are getting close(r) to the bottom but, as one source pointed out to us recently, “You don’t catch a falling knife.” So, we will wait for the catalyst to happen that will push prices higher from here.

Here is how we see spot flat rolled prices this week (all prices shown are in net tons which are equal to 2,000 pounds):

Hot Rolled Coil: SMU Range is $360-$400 per ton ($18.00/cwt- $20.00/cwt) with an average of $380 per ton ($19.00/cwt) FOB mill, east of the Rockies. Both the lower and upper ends of our range declined $10 per ton compared to last week. Our overall average is down $10 over one week ago. SMU price momentum for hot rolled steel has prices moving lower over the next 30 days.

Hot Rolled Lead Times: 1-4 weeks.

Cold Rolled Coil: SMU Range is $490-$530 per ton ($24.50/cwt- $26.50/cwt) with an average of $510 per ton ($25.50/cwt) FOB mill, east of the Rockies. The lower end of our range remained the same compared to week ago while the upper end declined $10 per ton. Our overall average is down $5 per ton compared to one week ago. SMU price momentum for cold rolled steel is for prices to slip over the next 30 days.

Cold Rolled Lead Times: 4-7 weeks.

Galvanized Coil: SMU Base Price Range is $24.50/cwt-$26.50/cwt ($490-$530 per ton) with an average of $25.50/cwt ($510 per ton) FOB mill, east of the Rockies. Both the lower and upper ends of our range declined $10 per ton compared to last week. Our overall average is down $10 over one week ago. Our price momentum on galvanized steel is for prices to move lower over the next 30 days.

Galvanized .060” G90 Benchmark: SMU Range is $550-$590 per net ton with an average of $570 per ton FOB mill, east of the Rockies.

Galvanized Lead Times: 3-7 weeks.

Galvalume Coil: SMU Base Price Range is $26.00/cwt-$27.00/cwt ($520-$540 per ton) with an average of $26.50/cwt ($530 per ton) FOB mill, east of the Rockies. The lower end of our range remained the same compared to week ago while the upper end declined $30 per ton. Our overall average is down $15 per ton compared to last week. Like the other flat rolled products mentioned above our price momentum for Galvalume is currently pointing towards lower prices over the next 30 days.

Galvalume .0142” AZ50, Grade 80 Benchmark: SMU Range is $811-$831 per net ton with an average of $821 per ton FOB mill, east of the Rockies.

Galvalume Lead Times: 5-7 weeks.

SMU Note: Below is a graphic showing our hot rolled, cold rolled, galvanized, and Galvalume price history. To use the graphs interactive capabilities, you must view it on our website here. If you need help navigating the website or need to know your login information, contact us at info@SteelMarketUpdate.com or by calling 800-432-3475.