Steel Products Prices North America

SMU Price Ranges & Indices: Why the Mills are Pushing Increases

Written by Brett Linton

March 18, 2014

There are always reasons behind the domestic steel mills’ attempt to push flat rolled steel prices. One of the reasons, and the one we believe is being exercised by those mills who have already made price announcements, is prices have moved too low too fast. Based on Steel Market Update data, benchmark hot rolled coil peaked in early January at an average of $680 per ton (some were paying more at the time and some less). Since then the HRC price average has dropped by $60 per ton. This is a modest move within a pricing cycle but one that the domestic steel mills feel has gone far enough.

The price drop is even more severe on coated products which saw a moderate drop in their averages again this week. During our conversations with buyers this week many were left wondering if the sharp drops seen over the past few weeks could be stopped – especially with scrap prices down another $15 per gross ton this month. Many are waiting to see having bought at the numbers referenced below.

From a conversion mill we heard today that their cost on inbound hot rolled substrate (having bought prior to the latest sharp drop in prices) was putting them in a position to support and encourage prices moving higher from here. So, exactly where are we seeing what many are hoping is the bottom of this market cycle:

Hot Rolled Coil: SMU Range is $600-$640 per ton ($30.00/cwt- $32.00/cwt) with an average of $620 per ton ($31.00/cwt) FOB mill, east of the Rockies. Both the lower and upper ends of our range remained the same compared to last week. Our average is unchanged compared to last week. Our expectation is for hot rolled pricing to move sideways over the next 30 days.

Hot Rolled Lead Times: 3-6 weeks.

Cold Rolled Coil: SMU Range is $720-$760 per ton ($36.00/cwt- $38.00/cwt) with an average of $740 per ton ($37.00/cwt) FOB mill, east of the Rockies. The lower end of our range remained the same compared to last week while the upper end decreased by $20 per ton. Our average is now $10 per ton lower compared to last week. SMU anticipates cold rolled prices will move sideways over the next 30 days.

Cold Rolled Lead Times: 5-8 weeks.

Galvanized Coil: SMU Base Price Range is $700-$750 per ton ($35.00/cwt- $37.50/cwt) with an average of $725 per ton ($36.25/cwt) FOB mill, east of the Rockies. The lower end of our range decreased by $20 per ton compared to last week while the upper end decreased by $10 per ton. Our average is now $15 per ton lower compared to last week. SMU anticipates galvanized base prices will trend sideways over the next 30 days.

Galvanized .060” G90 Benchmark: SMU Range is $760-$810 per ton with an average of $785 per ton FOB mill, east of the Rockies.

Galvanized Lead Times: 4-8 weeks.

Galvalume Coil: SMU Base Price Range is $720-$750 per ton ($36.00/cwt- $37.50/cwt) with an average of $735 per ton ($36.75/cwt) FOB mill, east of the Rockies. The lower end of our range remained the same compared to last week while the upper end decreased by $20 per ton. Our average is now $10 per ton lower compared to last week. Our expectation is for Galvalume prices to move sideways over the next 30 days.

Galvalume .0142” AZ50, Grade 80 Benchmark: SMU Range is $1011-$1041 per ton with an average of $1026 per ton FOB mill, east of the Rockies.

Galvalume Lead Times: 5-8 weeks.

SMU Note: You can view the interactive graphic below when you are logged into the website and reading the newsletter online. If you have not logged into the website in the past and need a new user name and password we can do that for you out of our office. Contact us at: info@SteelMarketUpdate.com or by calling 800-432-3475. If you need help navigating the website we would also be happy to assist you.

{amchart id=”110″ Weekly Pricing Article Graph- Use for NEWSLETTER}

Brett Linton

Brett Linton is a senior analyst for Steel Market Update, where he began his career. Linton has been in the steel industry since 2010. He has held roles as a category manager and strategic insights director at Reibus before returning to SMU in 2024. He is a graduate of The University of North Georgia with a degree in Finance and Accounting. Brett can be reached at brett@steelmarketupdate.com or 724-314-0179.

Read more from Brett Linton

Latest in Steel Products Prices North America