SMU Price Ranges & Indices: How Low Can Prices Go?

Once again flat rolled steel prices fell as steel buyers held back orders sensing blood in the water (lower prices). As one service center owner put it to Steel Market Update this afternoon, “The question is how weak can it get?” We were told the market had been acting like it had a “slow leak” but that has changed. Hot rolled has weakened and SMU has seen information suggesting there are $800-$820 deals out there (not counting JSW Ohio). We picked up a number of price points at $840 and we decided to call that the low end of the market right now. However, steel buyers need to be aware there may be further weakening ahead.

We are making a change in the .060″ G90 coating extra used when calculating that product for our index. The new extra will be $3.90/cwt, which is the extra used prior to the increases which came about late last and earlier this year.