SMU Price Ranges & Indices: Moving Slightly Lower

However, there are a number of steel buyers who believe the stress will continue to build over the next 60 days and they believe the low end of the range will break through the $600 per ton level. The low’s last year on benchmark hot rolled coil was approximately $580 per ton.

Bottom line is there is room for prices to move lower from here but, the question is do we move another $10 or $20 per ton or much more before the market stabilizes and moves higher.

Here is how we are seeing prices this week:

Hot Rolled Coil: SMU Range is $640-$690 per ton ($32.00/cwt- $34.50/cwt) with an average of $665 per ton ($33.25/cwt) FOB mill, east of the Rockies. The lower end of our range decreased by $10 per ton compared to last week while the upper end remained unchanged. Our average is now $5 per ton lower compared to last week. SMU price momentum for hot rolled is for prices to slide over the next 30 days. We are not expecting a collapse of the market due to production issues holding supply in check but, there are chinks in the armor…

Hot Rolled Lead Times: 3-6 weeks.

Cold Rolled Coil: SMU Range is $750-$810 per ton ($37.50/cwt- $40.50/cwt) with an average of $780 per ton ($39.00/cwt) FOB mill, east of the Rockies. The lower end of our range decreased by $10 per ton compared to last week while the upper end remained the same. Our average is now $5 per ton lower compared to last week. SMU price momentum on cold rolled is the same as hot rolled, we expect some minor slippage over the next 30 days but production issues are allowing the mills to hold prices firmer longer than if all of the steelmaking capacity was online right now. The $115 per ton spread between hot rolled and cold rolled is a little higher than normal and we expect the spread to come back in over the next 60 days.

Cold Rolled Lead Times: 4-8 weeks.

Galvanized Coil: SMU Base Price Range is $750-$800 per ton ($37.50/cwt- $40.00/cwt) with an average of $775 per ton ($38.75/cwt) FOB mill, east of the Rockies. The lower end of our range decreased by $20 per ton compared to last week as did the upper end of our range. Our average is now $20 per ton lower compared to last week. SMU anticipates galvanized base prices will decline over the next 30 days.

Galvanized .060” G90 Benchmark: SMU Range is $810-$860 per ton with an average of $835 per ton FOB mill, east of the Rockies.

Galvanized Lead Times: 5-9 weeks.

Galvalume Coil: SMU Base Price Range is $750-$800 per ton ($37.50/cwt- $40.00/cwt) with an average of $775 per ton ($38.75/cwt) FOB mill, east of the Rockies. The lower end of our range decreased by $10 per ton compared to last week while the upper end decreased by $20 per ton. Our average is now $15 per ton lower compared to one week ago. Our expectation is for Galvalume prices to decline over the next 30 days.

Galvalume .0142” AZ50, Grade 80 Benchmark: SMU Range is $1041-$1091 per ton with an average of $1066 per ton FOB mill, east of the Rockies.

Galvalume Lead Times: 5-8 weeks.

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