Steel Products Prices North America

Are Steel's High Prices Hurting Demand?
Written by Tim Triplett
January 13, 2021
The laws of economics state that rising prices eventually cut into demand. With hot rolled steel prices at a record high of $1,080 per ton, has steel demand begun to suffer? Comments from the service center and OEM executives responding to Steel Market Update’s questionnaire this week were evenly divided.
“No, the high steel prices have not begun to negatively impact demand yet. The customer base needs it and will pay the price,” commented one respondent. “Because many buyers are on quarterly contracts, the real impacts may not be felt until April and beyond,” noted another.
Others report initial signs of weakening demand due to the high cost of steel:
- “End-users are pushing out buys due to pricing wherever possible.”
- “We have some customers electing to reduce production due to lack of availability.”
- “I believe buyers are starting to run up against their credit limits.”
- “We cannot extend any more credit lines to our customers; they are getting behind on payments. We have started to turn away orders just like in 2018.”
- “In steel containers, we are seeing pushback on demand due to higher steel costs. Our cost of goods sold is highly steel intensive and major customers are waiting on discretionary spending.”
As the mills bring on new capacity in the coming year, steel consumption will be the primary determinant in how quickly supply and demand reach equilibrium and prices begin to moderate.
Tim Triplett
Read more from Tim TriplettLatest in Steel Products Prices North America
September Import Share of US Sheet and Plate Markets
Imported sheet and plate products arrived at US ports at a slower clip in September, accounting for a lower share of the domestic market for the third straight month. That’s according to a Steel Market Update analysis of import data from the US Commerce Department and domestic shipment figures from the American Iron and Steel […]
US Apparent Steel Supply Falls Further in September
US apparent steel supply eased further in September, down 8% from August to 8.29 million net tons, according to data from the US Department of Commerce and the American Iron and Steel Institute (AISI). As the lowest monthly figure since February 2021, this was a 19-month low. September supply was 10% below the average monthly rate […]
Northwest Pipe Reports Sharply Higher Q3 Results
Engineered pipe and tube producer Northwest Pipe Co. posted sharply higher profits for the third quarter ended Sept. 30. The Vancouver, Wash.-based company said the boost was driven by strong demand and increasing backlogs from its engineered pipeline systems and precast products, according to earnings data released on Tuesday, Nov. 8 All told, Northwest Pipe posted net […]
SMU Price Ranges: Flat-Rolled Steel Falls (Yet Again)
Sheet prices fell across the board again this week as the slow grind lower that we’ve seen since last spring continued to gain speed. Hot-rolled coil prices fell $30 per ton ($1.50 per cwt) week-over-week. Declines in coated products were more pronounced, with cold rolled down $55 per ton, galvanized down $35 per ton, and […]
US Steel Exports Slip 10% in September
US steel export volumes shrunk 10% from August to September, according to the latest US Commerce Department data. 723,000 net tons of steel products exited the country during the month, now the fourth-lowest monthly export rate over the past year and a half. Recall that exports levels in August were at the third-highest monthly rate […]
