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    January 12, 2021

    SMU Price Ranges & Indices: Hot Rolled Hits a New High

    Written by Brett Linton

    The benchmark price for hot rolled steel reached a new record high of $1,080 per ton this week, according to Steel Market Update’s latest check of the market, surpassing the previous high of $1,070 per ton recorded by SMU in 2008. Prices for flat rolled and plate steel products jumped by another $40-80 per ton in the past week as steel demand continued to outstrip supplies and spot market tons remained scarce. Steel prices are difficult to assess given the tight market conditions with relatively few non-contract transactions taking place. Consider that it won’t be until sometime later this year that mills bring new steelmaking capacity online. Imports remain limited by strong markets overseas and restrictive tariffs in the U.S. And demand is fairly robust despite the pandemic’s effects on the economy. Without an increase in production/imports or a decrease in consumption to bring supply and demand more in balance, prices could rise even further in the coming weeks. Steel Market Update’s Price Momentum Indicators remain pointed toward higher steel prices in the next 30-60 days.

    Here is how we see prices this week:

    Brett Linton

    Brett Linton is a digital operations analyst for Steel Market Update, where he began his career. Linton has been in the steel industry since 2010. He has held roles as a category manager and strategic insights director at Reibus before returning to SMU in 2024. He is a graduate of The University of North Georgia with a degree in Finance and Accounting. Brett can be reached at brett@steelmarketupdate.com or 724-314-0179.

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