SMU Price Ranges: Sheet, plate prices rise on limited supplies, firm demand

“We continue to turn over every rock to see what’s there, and if you don’t decide quickly when you find steel – you don’t get a second chance,” one Midwest service center source said. The good news? “We’re making money with every ton we get,” he added.

SMU’s hot-rolled (HR) coil price now stands at $1,225 per short ton (st) on average, up $20 from last week and up $45/st from a month ago. We saw a similar trend for cold-rolled (CR) and coated base prices. Prices for CR, galvanized, and Galvalume are now at $1,460/st on average, up $20-30/st from last week. Plate prices, meanwhile, rose to $1,420/st on average, up $25/st versus a week ago.

Next stop $1,300/st?

With HR prices now solidly above $1,200/st, the question is how long it will take domestic mills to push them above $1,300/st, some sources asked.

“It’s tighter this week than it was a week ago or two weeks ago,” one industry source said. “It’s awfully hard to find steel at less than $60” (per hundredweight).

Several market participants noted that imports should continue to ramp up in the months ahead with the spread between US prices and import offers historically high – attracting buyers who typically haven’t dabbled in foreign markets. But most didn’t think higher import volumes would push US prices lower in the near term. 

“Demand because of the data-center craze is just on fire here,” one Southwest service center source said. “No one has enough steel. The appetite is insatiable. And I don’t think import is going to put a dent in it – at least not in the initial waves.” 

Momentum

SMU’s price momentum indicators remain at higher for both sheet and plate products, signaling that we expect prices to increase further in the short term.

Refer to Table 1 (click to enlarge) for our latest price indices and trends.

Hot-rolled coil: $1,190–1,260/st, averaging $1,225/st

The lower end of our range is up $10/st w/w, while the top end is up $30/st. Our overall average is up $20/st w/w.

Hot-rolled lead times range from 5–11 weeks, averaging 7.6 weeks as of our Sept. 2 market survey.

Cold-rolled coil: $1,440–1,480/st, averaging $1,460/st

The lower end of our range is up $40/st w/w, while the top end is up $20/st. Our overall average is up $30/st w/w.

Cold-rolled lead times range from 7–12 weeks, averaging 9.0 weeks through our latest survey.

Galvanized coil: $1,440–1,480/st, averaging $1,460/st

The lower end of our range is up $40/st w/w, while the top end is unchanged. Our overall average is up $20/st w/w.

Galvanized .060×48” G90 benchmark: SMU price range is $1,539–1,579/st, averaging $1,559/st FOB mill, east of the Rockies. Note that this spec includes $99/st in mill extras, and extras may vary by mill.

Galvanized lead times range from 6–12 weeks, averaging 8.7 weeks through our latest survey.

Galvalume coil: $1,440–1,480/st, averaging $1,460/st

The lower end of our range is up $40/st w/w, while the top end is unchanged. Our overall average is up $20/st w/w.

Galvalume .0142×42” AZ50, grade 80 benchmark: SMU price range is $2,040–2,080/st, averaging $2,060/st FOB mill, east of the Rockies. Note that this spec includes $600/st in mill extras, and extras may vary by mill.

Galvalume lead times range from 6–12 weeks, averaging 8.8 weeks through our latest survey.

Plate: $1,360–1,480/st, averaging $1,420/st

The lower end of our range is unchanged w/w, while the top end is up $50/st. Our overall average is up $25/st w/w.

Plate lead times range from 7–12 weeks, averaging 9.3 weeks through our latest survey.