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    October 5, 2021

    SMU Price Ranges & Indices: Transition Adds Volatility

    Written by Brett Linton

    Flat rolled steel prices are in transition, which tends to lead toward more volatility and wider price ranges in Steel Market Update data. One of the issues we face when we reach an inflection point in the spot market is the lack of daily transactions. With service center inventories nearing a state of balance, combined with the normal seasonal slowdown, there are a limited number of “true buyers” out there in the market. This week’s check of the market shows hot rolled prices slightly higher at an average of $1,930 per ton, after seeing small declines for the last few weeks. There’s also a wider gap than usual between cold rolled and galvanized. SMU’s Price Momentum Indicators will remain at Neutral until there is a clear consensus regarding the future direction of prices in the various product categories.

    Hot Rolled Coil: SMU price range is $1,900-$1,960 per net ton ($95.00-$98.00/cwt) with an average of $1,930 per ton ($96.50/cwt) FOB mill, east of the Rockies. The lower end of our range increased $40 per ton compared to last week, while the upper end decreased $20. Our overall average is up $10 per ton from one week ago. Our price momentum on hot rolled steel will remain Neutral until the market establishes a clear direction.

    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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