Steel Products Prices North America

SMU Price Ranges & Indices: Steel Mills Begin Collecting Prices Above Minimums

December 20, 2016

When it comes to coated steels (galvanized and Galvalume) the domestic steel mills are beginning to collect prices above the “minimum” guidance number of $820 per ton ($41.00/cwt). We are seeing some of the mills, including some of the smaller conversion mills, collecting as much as $840 per ton base pricing plus extras ($42.00/cwt). Hot rolled continues to be the weakest flat rolled steel product although the number of $580 offers have all but disappeared for most buyers this week. Our HRC average this week is now $595 as the product continues to consolidate toward the upper end of the range.

Lead times appear to be moving out. We will have more data on that subject on Thursday when we publish our “Lead Time” and “Negotiation” articles from our flat rolled steel market trends analysis we are working on right now. We will try to also compare what we are collecting from buyers and see how it compares with a couple of the domestic mills and what they are publishing to their customers.

Here is how we see prices this week:

Hot Rolled Coil: SMU Range is $580-$610 per ton ($29.00/cwt-$30.50/cwt) with an average of $595 per ton ($29.75/cwt) FOB mill, east of the Rockies. The lower end of our range remained the same over one week ago while the upper end increased $10 per ton. Our overall average is up $5 per ton compared to last week. Our price momentum on hot rolled steel continues to be pointing toward Higher which means that prices are expected to move up over the next 30-60 days.

Hot Rolled Lead Times: 3-6 weeks

Cold Rolled Coil: SMU Range is $780-$830 per ton ($39.00/cwt-$41.50/cwt) with an average of $805 per ton ($40.25/cwt) FOB mill, east of the Rockies. The lower end of our range was unchanged over last week while the upper end increased $10 per ton. Our overall average is up $5 per ton over one week ago. Our price momentum on cold rolled steel continues to point toward Higher which means that prices are expected to move up over the next 30-60 days.

Cold Rolled Lead Times: 5-9 weeks

Galvanized Coil: SMU Base Price Range is $39.50/cwt-$42.00/cwt ($790-$840 per ton) with an average of $40.75/cwt ($815 per ton) FOB mill, east of the Rockies. The lower end of our range increased $10 per ton over one week ago while the upper end rose $20 per ton. Our overall average is up $15 per ton compared to last week. Our price momentum on galvanized steel continues to point Higher which means that prices are expected to move up over the next 30-60 days.

Galvanized .060” G90 Benchmark: SMU Range is $859-$909 per net ton with an average of $884 per ton FOB mill, east of the Rockies.

Galvanized Lead Times: 6-12 weeks

Galvalume Coil: SMU Base Price Range is $40.00/cwt-$42.00/cwt ($800-$840 per ton) with an average of $41.00/cwt ($820 per ton) FOB mill, east of the Rockies. Both the lower and upper ends of our range rose $20 per ton over last week. Our overall average is up $20 per ton over one week ago. Our price momentum on Galvalume steel continues to point Higher which means that prices are expected to move up over the next 30-60 days.

Galvalume .0142” AZ50, Grade 80 Benchmark: SMU Range is $1091-$1131 per net ton with an average of $1111 per ton FOB mill, east of the Rockies.

Galvalume Lead Times: 7-12 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.