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    SMU Price Ranges & Indices: Prices Still Rising, For Now

    Written by Brett Linton


    U.S. flat-rolled steel prices remain on the rise thanks to strong demand, thin spot supplies and limited short-term competition from imports. While some sources think imports could send domestic prices lower, others note that foreign steel suffers from the late deliveries that have plagued customers of domestic mills. “Too much risk ordering foreign steel with lead times into the summer as well as the ship shortages and huge port delays,” said one respondent to Steel Market Update’s check of the market this week. In short, peak pricing might be in sight. But the U.S. steel market isn’t there yet. “I believe we are 20-30 days away from mills beginning to negotiate,” another survey respondent said. SMU’s hot-rolled coil price in the meantime averages $1,150 per ton ($57.50/cwt)–up $10 per ton from last week and marking a new all-time high for U.S. HRC prices for the fourth consecutive week. And the latest gains come despite increasing fears of a correction in the weeks ahead. Steel Market Update’s Price Momentum Indicators continue to point toward higher prices in the short term, but perhaps not for much longer.

    Here is how we see prices this week:

    Brett Linton

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    Mills seek more scrap after lower prices fail to attract tons

    Several mills that bought October scrap early last week are still asking for additional supplies, scrap market participants said. The reason: the mills' initial prices did not attract enough of the raw material, they said. A trading source based in northern Ohio said three mills have contacted his firm seeking offers for additional tons. He said the mills asked for offers even if prices were higher than their original buys last week.

    Nucor increases spot HR to $1,240/ton

    Nucor said on Monday, Oct. 12, that its consumer spot price (CSP) for hot-rolled (HR) coil will be $1,240 per short ton (st) this week, a $10/st increase from a week earlier. The CSP for HR coil from California Steel Industries (CSI) on the West Coast will be $1,305/st, up $15/st from the prior week. Nucor is still offering lead times of three to five weeks, according to the letter to customers. You can track mill price announcements on our website. Steel Market Update (SMU) published a weekly price assessment on Tuesday, Oct. 6, showing HR coil prices averaging $1,270/st, up $10/st from the previous week. We will update our prices on the evening of Tuesday, Oct. 13.

    Leibowitz: US steel prices skyrocket above world prices. Which are right?

    Steel markets in the United States now feature supply shortages. Spot tons are well-nigh unavailable, and even contract tons are scarce. Based on the available statistics, the US market for flat-rolled products is seriously constrained. The US economy is still the strongest in the world, and manufacturing output remains vigorous. But the available supply is tight. The reason is fairly obvious. US domestic supply has increased a bit. Meanwhile, imports have fallen significantly.