Steel Products Prices North America
Hot Rolled vs Plate Steel Prices: Plate Premium at 42%
Written by Brett Linton
May 18, 2022
Sheet steel prices are moving downwards after the March/April bump, while plate prices continue to hold their ground, according to SMU’s price indices published each Tuesday. Plate prices typically carry a premium over hot rolled prices because plate is a value-added product and requires more time on the mill.
Hot rolled coil averaged $1,350 per ton ($67.50 per cwt) this week and has declined each of the past four weeks. Recall our index had reached a 14-month low of $1,000 per ton in the first week of March, following a record-high $1,955 per ton in September 2021. Our latest plate index averaged $1,925 per ton last week, down $15 per ton from the week prior but up $5 per ton from one month ago. Plate prices have been stable compared to sheet prices, with our plate index remaining between $1,775 and $1,940 for nearly 8 months now.
As shown in the graph below, in 2017 plate prices held an average premium of $99 per ton over hot rolled. That premium rose to a high of $325 per ton in February 2019, declining thereafter until it diminished and hot rolled begain to sell at a higher price in October 2020. HRC held onto that premium until November 2021, losing it after flat rolled prices began declining in October and plate prices stood firm. The plate premium peaked at $820 per ton in the first week of March of this year, quickly falling to $410 by the end of the month, but rising again to $575 this week and last. The average premium held by plate over HRC for 2022 year-to-date is now $531.
To better compare this price spread, we graphed the plate price premium over hot rolled as a percentage of the hot rolled price. This is an attempt to paint a clearer comparison against historical pricing data. Plate prices held a 16% premium over hot rolled in 2017 on average, peaking at a 56% premium in June 2019. The premium declined from there and turned negative in October 2020 (when HR began to sell at a higher price than plate), falling to a low of -17% in June 2021. Plate regained its premium price in November 2021, surging to a record high premium of 82% in the first week of March and falling to 29% by the end of the month. The latest plate premium is 43%, with 2022 averaging 42% YTD.
By Brett Linton, Brett@SteelMarketUpdate.com
Brett Linton
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