Product
May 16, 2024
Written by Ethan Bernard
Domestic scrap prices this month were flat for prime material but down for HMS and shredded, scrap sources told SMU.
“May trading for obsolete grades ranged anywhere from sideways in Philadelphia to down $10-20 in other regions of the country,” one scrap source said.
Lead times for sheet and plate continued to extend amid a domestic supply squeeze, according to the latest SMU steel market survey data. Average lead times stretch into mid- or late December, and those at some mills now extend into 2027. Lead times for all sheet products except Galvalume stand at their highest point since the post-covid demand snapback in 2021. Lead times for plate are now even higher than their 2021 peak.
US service centers’ flat-rolled steel supply increased marginally in September, gaining ground for only the second time all year. Shipping days of supply rose to 45.9 last month, according to SMU data. That figure marks a 3.7% increase from August. September’s result represents a modest gain after inventories hit a five-year low the previous month. But it’s nearly 16% below September 2025 levels. Sheet inventories have averaged ~45 shipping days of supply over the past six months. Flat-rolled inventories represented 2.18 months of supply in September, up 3.7% from August. However, the figure was 15.5% below September 2025. The month-on-month (m/m) gain in inventories resulted from a boost (+21.2%) in intake that was partially offset by a 5% increase in shipments.
CMC’s earnings increased in its fiscal fourth quarter, aided by strong growth in its North America Steel Group. The Irving, Texas-based longs steel producer and metal solutions provider reported net earnings of $212.5 million in its fiscal fourth quarter ended Aug. 31, up 40% from $151.8 million a year earlier. Net sales rose 26% to nearly $2.66 billion in the same comparison. The company said that core EBITDA growth increased 11.3% sequentially in its fiscal Q4 to $393.7 million, led by its North America Steel Group. In that segment, stronger margins and volume growth drove 60 basis points of core EBITDA margin expansion.
The spread between domestic hot-rolled (HR) coil and prime scrap prices widened for the 13th consecutive month in October, hitting another multi-year high. SMU’s hot-rolled (HR) coil price stands at $1,280 per short ton (st) on average this week, up $10/st from last week and a $40/st increase from a month earlier. Meanwhile, busheling averaged $480 per gross ton (gt) in October, rising $12.50/gt higher from September.
CME Group’s hot-rolled coil futures have jumped higher as the loss of a reheating line at a large Southern mill have renewed domestic production issues. At market close on Oct. 12, the Q4'26 futures are now pricing in $1,295 per short ton (st) for HR coil, a month-over-month (m/m) increase of $63/st. For 2027, the forward curve is up $80 /st vs. September, at $1,207/st. For November 2026 through March 2027, prices are at an average just above $1,300/st.