SMU Price Ranges & Indices: Another Big Drop

Steel prices saw a big dip this week as the benchmark hot rolled price dropped to $1,335 per ton. That’s down more than 30% since the September peak and the lowest HR has been since the end of March 2021. Except for plate, which was pretty stable, flat rolled prices declined anywhere from $50-90 per ton, based on the responses to Steel Market Update’s survey this week. Roughly seven out of 10 respondents said they have seen an acceleration in the pace of the steel price declines. “Absolutely, and in shocking fashion. It might not be accelerating, per se, but down $3/cwt each week is wild!” Added another: “Hot Rolled seems to be moving too fast. Cold rolled and coated are moving down, but at a slower pace.” SMU’s Price Momentum Indicators on flat rolled remain at Lower, meaning prices can be expected to decline further in the next 30 days. SMU’s Momentum Indicator on plate remains at Neutral until the market establishes a clearer direction.

Hot Rolled Coil: SMU price range is $1,250-$1,420 per net ton ($62.50-$71.00/cwt) with an average of $1,335 per ton ($66.75/cwt) FOB mill, east of the Rockies. The lower end of our range decreased $100 per ton compared to one week ago, while the upper end declined $80 per ton. Our overall average is down $90 per ton from last week. Our price momentum on hot rolled steel is at Lower, meaning we expect prices to decrease over the next 30 days.