SMU Price Ranges & Indices: Prices Continue to Ease Down

Steel Market Update’s poll of buyers on Monday and Tuesday showed further small declines for flat rolled steel prices, while plate prices were up a bit. No sign yet of a sharp correction as prices continue to ease downward. The benchmark price for hot rolled is now down to $1,830 per ton, $25 lower than last week and down $125 from the peak in early September. SMU’s Hot Rolled Price Momentum Indicator continues to point Down, as HR prices are likely to see further decreases over the next 30 days. Prices for cold rolled and coated products also dipped by $10-25 per ton this week, but the trend is less certain and SMU’s Momentum Indicators for those products remain at Neutral. Prices are more difficult than usual to track given various end-of-year factors – such as seasonal demand and inventory adjustments. And what happens to prices when the ports manage to work through their bottlenecks and big tonnages of foreign steel finally make it to market? Be on the lookout, as we are, for even more volatility ahead.

Hot Rolled Coil: SMU price range is $1,760-$1,900 per net ton ($88.00-$95.00/cwt) with an average of $1,830 per ton ($91.50/cwt) FOB mill, east of the Rockies. The lower end of our range decreased $15 per ton compared to last week, while the upper end decreased $35. Our overall average is down $25 per ton from one week ago. Our price momentum on hot rolled steel is Lower, meaning we expect prices to decrease over the next 30 days.