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    February 16, 2021

    SMU Price Ranges & Indices: New High Mark for HR at $1,200

    Written by Brett Linton

    Speculation that hot rolled steel prices could reach $1,200 per ton drew scoffs from some quarters just two months ago, yet here we are. Steel Market Update’s check of the market this week shows the average HR price up a further $20 per ton to yet another record high. The HR price surpassed the former high recorded by SMU ($1,070 in mid-2008) in the second week of January and has added $130 to the average price tag for a ton of steel since then. How much higher can it go? “Until people stop buying,” commented one respondent to SMU’s survey this week. “This is a unique market and the combination of factors are making for a perfect storm.” Nothing perfect about the stormy winter weather that is delaying steel shipments all across the country, only adding to the tight supplies and difficulty buyers face getting their hands on steel. Prices for other flat rolled products jumped by around $30 per ton this week as well. And steel prices could keep rising until new mill capacity comes online – something that won’t happen until this summer – or until imports reach a critical mass. SMU’s Price Momentum Indicators continue to point toward higher prices in the short term. But buyer beware: That momentum could shift rapidly now that HR has hit what many observers believed would be the market’s peak.

    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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