Steel Products Prices North America
SMU Price Ranges: Sheet Declines Moderate – Meaning or Noise?
Written by David Schollaert & Michael Cowden
September 26, 2023
Hot-rolled coil prices were down again this week, continuing a streak of week-over-week (WoW) declines that began in early/mid-July.
Recall that’s when a round of price hikes announced in June faltered after briefly stabilizing the market.
While HRC prices slipped, the $15-per-ton (0.5 per cwt) w/w decline SMU recorded this week was modestly less than the ~$25-per-ton w/w declines we’d averaged previously.
Take a look at SMU’s pricing tool. You’ll see it was a similar story for cold-rolled and galvanized base prices, which were both down $10 per ton w/w. Cold-rolled and galvanized WoW declines had been averaging ~$15-20 per ton previously.
Some market participants will tell you that those changes are significant and potential evidence of a sheet market nearing a bottom.
They might tell you that lower inventories, uncompetitive imports, and mostly steady demand outside of automotive will support a new floor. They might also note that capacity has been tightened by U.S. Steel idling a blast furnace, by fall maintenance outages (some of which have been extended), and by certain EAF mills quietly ratcheting back capacity.
Other sources will tell you that it’s just noise. They might tell you that it’s hard to handicap prices without knowing how long the UAW strike might last and how many assembly plants it might impact. Both of those factors are unknows as of now.
All told, however, sheet sentiment was more positive this week than in prior weeks. That was not the case in plate, where prices slipped $10 per ton and where sentiment soured.
SMU is in the meantime keeping its price momentum indicators pointed lower. While there is talk of a price bottom in sheet, we will not move our sheet price indicator to neutral until we see more evidence of a stable floor.
Hot-Rolled Coil
The SMU price range is $600–690 per net ton ($30.00–34.50 per cwt), with an average of $645 per ton ($32.25 per cwt) FOB mill, east of the Rockies. Both the bottom end of our range decreased $20 per ton vs. one week ago, while the top end of our range was $10 per ton lower WoW. As a result, our overall average is $15 per ton lower compared to the prior week. Our price momentum indicator for hot-rolled coil is still pointing lower, meaning SMU expects prices will decline more over the next 30 days.
Hot-Rolled Lead Times: 3–7 weeks
Cold-Rolled Coil
The SMU price range is $830–900 per net ton ($41.50–45.00 per cwt), with an average of $865 per ton ($43.25 per cwt) FOB mill, east of the Rockies. The lower end of our range was unchanged WoW, while the top end was $20 per ton lower compared to a week ago. Our overall average is down $10 per ton WoW. Our price momentum indicator on cold-rolled coil is still pointing lower, meaning SMU expects prices will decline more over the next 30 days.
Cold-Rolled Lead Times: 5–8 weeks
Galvanized Coil
The SMU price range is $830–900 per net ton ($41.50–45.00 per cwt), with an average of $865 per ton ($43.25 per cwt) FOB mill, east of the Rockies. The lower end and top end of our range were down $10 per ton vs. last week. As a result, our overall average is down $10 per ton vs. the prior week. Our price momentum indicator on galvanized steel is pointing lower, meaning SMU expects prices will decline more over the next 30 days.
Galvanized .060” G90 Benchmark: SMU price range is $927–997 per ton with an average of $962 per ton FOB mill, east of the Rockies.
Galvanized Lead Times: 4-9 weeks
Galvalume Coil
The SMU price range is $850–900 per net ton ($42.50–45.00 per cwt), with an average of $875 per ton ($43.75 per cwt) FOB mill, east of the Rockies. The lower end of our range was down $10 per ton vs. last week, while the top end of the range was $40 per ton lower WoW. Our overall average was down $25 per ton compared to one week ago. Our price momentum indicator on Galvalume steel is still pointing lower, meaning SMU expects prices will decline more over the next 30 days.
Galvalume .0142” AZ50, Grade 80 Benchmark: SMU price range is $1,144–1,194 per ton with an average of $1,169 per ton FOB mill, east of the Rockies.
Galvalume Lead Times: 6–8 weeks
Plate
The SMU price range is $1,390–1,520 per net ton ($69.50–76.00 per cwt), with an average of $1,455 per ton ($72.75 per cwt) FOB mill. Both our lower end and top end of our range were down $10 per ton compared to the week prior. Thus, our overall average is down $10 per ton vs. one week ago. Our price momentum indicator on steel plate shifted to lower from neutral, meaning SMU expects prices will decline more over the next 30 days.
Plate Lead Times: 3–8 weeks
SMU Note: Below is a graphic showing our hot rolled, cold rolled, galvanized, Galvalume, and plate price history. This data is available here on our website with our interactive pricing tool. If you need help navigating the website or need to know your login information, contact us at info@steelmarketupdate.com.
David Schollaert
Read more from David SchollaertMichael Cowden
Read more from Michael CowdenLatest in Steel Products Prices North America
CRU: Falling steel prices limit demand for imports into US
The recent decline in US hot-rolled (HR) coil and longs prices has further restricted demand for imported material. Despite the decline in US sheet prices, CR coil and HDG imports remain attractive. While demand for imports of longs products has been limited, buyers have increased imports of wire products to avoid wire rods’ higher tariffs. […]
Galvanized prices maintain big premium over HR
Prices for hot-rolled (HR) coil in recent weeks have been declining faster than those for galvanized sheet, resulting in a growing price spread between the two steel products.
SMU price ranges: Sheet down broadly, HR $35/t lower
Sheet prices fell across the board this week – largely in response to Nucor’s $65-per-short-ton price cut for hot-rolled (HR) coil on Monday morning. SMU’s HR coil price is $780/st on average, a $35/st decrease week over week (w/w). Our average cold-rolled coil price is $1,090/st (down $30/st w/w). Our galvanized base price is $1,100/st […]
Nucor surprises with $65/ton price drop for HRC
Nucor started off May with a bang, dropping its weekly base spot price for hot-rolled (HR) coil by $65 per short ton (st) this week.
Nucor drops weekly HR coil price by $10/ton
Nucor lowered its weekly base spot price for hot-rolled (HR) coil by $10 per short ton (st) this week.