SMU Price Ranges & Indices: HRC Logs Another Week of Triple-Digit Gains

Steel prices continued to shoot upward at a breakneck pace as mills raced to keep ahead of spiraling raw material costs. Supply chain shocks caused by Russian forces’ invasion of Ukraine have led to higher pig iron prices, expectations of big gains in scrap prices next month – and all that comes on top of already ballooning costs for everything from fuel to zinc. SMU’s average hot-rolled coil price is at $1,400 per ton ($70 per cwt), up $140 per ton from $1,260 per ton last week. The increase, while enormous by historic standards, is less than what we saw last Tuesday, when we recorded our biggest week-over-week price gain ever. Despite the price shock, most sources reported stable or improving demand. Consumers previously on the side lines are now looking to buy ahead of further anticipated price hikes. And some – in an echo of market conditions last year – questioned whether steel might be in short supply in the months ahead. But others warned that lead times had not stretched out in tandem with the surge in prices and questioned whether demand was indeed strong enough to support such swift price gains. Increases were more modest on the coated side, where some sources reported greater import competition and a greater emphasis by mills on enforcing new, higher extras. On the plate side, stable prices were attributed in part to differing mill pricing structures – which were said to have effectively kept prices flat this week. Pricing momentum indicators for all products have remain at “higher” this week.

Hot Rolled Coil: SMU price range is $1,350-$1,450 per net ton ($67.50-$72.50/cwt) with an average of $1,400 per ton ($70.00/cwt) FOB mill, east of the Rockies. The lower end of our range increased $180 per ton compared to one week ago, while the upper end increased $100 per ton. Our overall average is up $140 per ton from last week. Our price momentum on hot rolled steel continues to point toward Higher prices over the next 30 days.