Price Methodology

Steel Market Update collects both actual transaction data which has occurred within a few days of our indices being published as well as the "bid" and "ask" price negotiations between buyers and sellers of steel. We analyze how flexible the mill offers are based on the relationship with the company they are trying to sell, lead times, price points found at other locations and other industry data which may impact pricing. Contract pricing and “bucket” deals are not considered in our spot price analysis.

We collect prices from manufacturing companies and distributors (service centers and wholesalers) and only use mills to confirm specific pricing points or for clarification.

Collection of data is done through daily phone surveys of buyers, email correspondence with buyers as well as our twice per month steel market survey. We attempt to canvass a broad spectrum of the industry as we collect prices from manufacturing companies, service centers, wholesalers and occasionally the steel mills. The minimum order quantity considered is 20 tons and there is no maximum quantity.

SMU Indices are FOB Mill, east of the Rockies. This means we receive price data from the Southeast, Midwest, East Coast, Plains states and central and eastern Canada. We do not consider data from the west coast mills in our east of the Rockies indices. Our readers need to understand there can be regional price differences depending on market conditions.

Hot rolled coil: Pricing is based on a minimum order quantity of 20 tons (no maximum) of ASTM A1011 Commercial Steel (C/S) base thickness and coil weights (no extras added).

Cold rolled coil: Pricing is based on a minimum order quantity of 20 tons (no maximum) of SAE 1006/1008 (or equivalent) prime annealed commercial steel (C/S) in base thickness and coil weights (no extras added).

Galvanized coil -Base Price Option: Pricing is based on a minimum order quantity of 20 tons (no maximum) of prime hot dipped galvanized coils base price (prior to extras being added).

Galvanized coil - Benchmark Option: Pricing is based on a minimum order quantity of 20 tons (no maximum) of prime coil meeting ASTM A653, commercial steel (C/S) with a minimum thickness of .060" X 48" to 60" in width, large PIW coils (no weight extras) with a zinc coating weight of G90.

Galvalume coil -Base Price Option: Pricing is based on a minimum order quantity of 20 tons (no maximum) of prime hot dipped Galvalume coils meeting ASTM A792 base price (prior to extras being added).

Galvalume coil - Benchmark Option: Pricing is based on minimum order quantity of 20 tons (no maximum) of prime hot dipped Galvalume coils meeting ASTM A792 in thickness .0142" AZ50, Grade 80 in widths over 40" and large coils (no other extras).

 

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