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    April 25, 2019

    Market Prices Moving Sideways to Lower, Say Steel Buyers

    Written by Tim Triplett

    The vast majority of flat rolled and plate steel buyers are reporting to Steel Market Update that prices on all products will be moving at best sideways, with most believing prices will move lower from here. We are seeing pressure on hot rolled, cold rolled and plate prices right now as indexes on these products all move lower this week. Coated steels, galvanized and Galvalume, appear to have more support, but it will be difficult to maintain the spread between hot rolled coil at $640 per ton, and galvanized base of $815 per ton. That spread is now $175 per ton, well above the historical average, which is closer to $100-$120 per ton. One week ago, the HRC to GI spread was $155 per ton. Something has to give in the not-too-distant future.

    SMU is trying to understand all the factors at play. Capacity utilization rates are being touted as 83 percent or higher at the domestic steel mills, even with two blast furnaces down at U.S. Steel Mon Valley. Various scheduled maintenance projects are coming up and the Section 232 tariffs are still in place. Even with all of these positives for the steel mills, pricing is under pressure.

    Tim Triplett

    Read more from Tim Triplett

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