SMU Price Ranges & Indices: “Some Scary Level for Steel”

Hot rolled steel offers ranged as high as $1,500 per ton this week as steel tags just keep rising to levels never seen before. Steel Market Update’s check of the market this week puts the average HR price at a record $1,440 per ton, up another $30 per ton over last week and 35% higher than the previous peak reported by SMU in 2008. Cold rolled and coated steel prices saw similar inflation of $20-40 per ton week over week as demand accelerates in the post-pandemic economic rebound and steel supplies remain in short supply. “This is some scary level for steel. Prices have been increasing by at least $100 per ton each month. So the coming peak could be even higher than we think,” said one buyer. Added another: “How can anyone argue that hot rolled won’t get to $1,500 per ton. We are already seeing above those numbers in the spot market. The indices will get there, guaranteed!”

Plate prices were more difficult to gauge this week as it is sometimes difficult to separate the FOB mill prices that we request from the delivered prices that we receive. A common price for plate, before delivery and extras, is likely around $1,220 per ton, in line with the minimum announced this week by Nucor. But some sources reported base prices as high as $1,340 per ton, putting the midpoint of the range higher at $1,280 per ton. So we leave it to readers to draw your own conclusions on plate. Steel Market Update’s Price Momentum Indicators continue to point toward higher prices on all steel products over the next 30 days.