SMU Price Ranges & Indices: Pace of Increases Slowing?

Steel prices continue to trek upward. But the pace has slowed, and questions about whether the market is at or near a summit have re-emerged. “Talked to two large OEMs that are postponing buys for the next few weeks. They believe we are at peak right now,” one respondent to Steel Market Update’s check of the market this week said. But others think such predictions ignore the more immediate reality of long mill lead times and limited spot availability. “We need steel. Inventories are not that great, so we have to buy when we can find tons,” another survey respondent said. As it stands, SMU’s hot-rolled coil price averages $1,140 per ton – up $10 per ton from last week and marking a new all-time high for the third week in a row. And SMU’s Price Momentum Indicators continue to point toward higher steel prices over the next 30-60 days. Still, HRC price increases are more modest this week compared to the $50-per-ton gain recorded on Jan. 19 and the $70-per-ton gain observed in the week prior.

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.