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    February 15, 2022

    SMU Price Ranges & Indices: Yet Another Big Drop

    Written by Brett Linton

    Steel prices saw another big drop this week, taking the benchmark price for hot rolled below $1,100 per ton for the first time since January 2021. Cold rolled and coated products registered double-digit declines as well, while plate prices appear to be holding their own, according to Steel Market Update’s check of the market on Monday and Tuesday. Steel mill lead times have gotten about as short as they can, but steel prices have a way to go before supply and demand shake out. SMU’s Price Momentum Indicators continue to point lower for flat rolled products over the next 30 days and neutral for plate until the trend there becomes clearer. At least one industry veteran sees an end to the price correction coming: “Global competition is fading away quite fast on all products, and a bottom seems to be forming. COVID is waning, pull-though is improving and there’s a more settled market on the horizon. But we will still see some squishiness for a while as inventories and production are adjusted and digested.”

    Hot Rolled Coil: SMU price range is $1,020-$1,140 per net ton ($51.00-$57.00/cwt) with an average of $1,080 per ton ($54.00/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 $120 per ton. Our overall average is down $110 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.

    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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