Steel Products Prices North America

SMU Price Ranges & Indices: Have the Mills Stopped Chasing Prices Down?

February 17, 2015

We received a very mixed bag when it came to hot rolled pricing this week. Our range expanded from the $490-$530 we reported last week to $480-$550 this week. Our HR average actually rose by $5 compared to one week ago. We are not ready to announce prices as having “bottomed,” as one renegade mill with a weak order book can change things in a heartbeat, but we are encouraged that there seems to be a bit of a pause this week.

In an exchange with a Ohio Valley area service center this afternoon the president of the company confided in us that they have been seeing a range of offers from $480 (not equalized) up to $510. In one case the offer jumped up $5 per ton as the negotiations continued. He told us the mill that was at $510 only got there after being pressed to move off of $520. The movement in price was tied to at least 1500 tons in prospective orders.

So far this week we are seeing more status quo numbers and fewer suicide price reductions coming out of the domestic mills.

Maybe the mills have learned that there is only so much spot business and the orders will be given out whether the prices get chased lower or remain where they are. Time will tell.

Here is how we see spot flat rolled prices this week (all prices shown are in net tons = 2,000 pounds = 1 net ton):

Hot Rolled Coil: SMU Range is $480-$550 per net ton ($24.00/cwt- $27.50/cwt) with an average of $515 per ton ($25.75/cwt) FOB mill, east of the Rockies. The lower end of our range decreased by $10 per ton compared to one week ago while the upper end increased by $20 per ton. Our average is now $5 per ton higher than last week. SMU price momentum for hot rolled steel is for prices to move lower over the next 30 days.

Hot Rolled Lead Times: 1-4 weeks.

Cold Rolled Coil: SMU Range is $610-$670 per net ton ($30.50/cwt- $33.50/cwt) with an average of $640 per ton ($32.00/cwt) FOB mill, east of the Rockies. The lower end of our range was unchanged compared to last week while the upper end increased by $10 per ton. Our average is now $5 per ton higher than one week ago. SMU price momentum on cold rolled steel is for prices to move lower over the next 30 days.

Cold Rolled Lead Times: 2-6 weeks.

Galvanized Coil: SMU Base Price Range is $30.50/cwt-$34.00/cwt ($610-$680 per net ton) with an average of $32.25/cwt ($645 per ton) FOB mill, east of the Rockies. Both the lower and upper ends of our range remained the same compared to one week ago, leaving our average unchanged from last week. SMU anticipates galvanized prices will move lower over the next 30 days.

Galvanized .060” G90 Benchmark: SMU Range is $679-$749 per net ton with an average of $714 per ton FOB mill, east of the Rockies.

Galvanized Lead Times: 3-6 weeks.

Galvalume Coil: SMU Base Price Range is $31.50/cwt-$34.00/cwt ($630-$680 per net ton) with an average of $32.75/cwt ($655 per ton) FOB mill, east of the Rockies. Both the lower and upper ends of our range remained the same compared to one week ago, leaving our average unchanged from last week. Our expectation is for Galvalume prices to move lower over the next 30 days.

Galvalume .0142” AZ50, Grade 80 Benchmark: SMU Range is $921-$971 per net ton with an average of $946 per ton FOB mill, east of the Rockies.

Galvalume Lead Times: 4-6 weeks.

SMU Note: Below is an interactive graphic showing our hot rolled, cold rolled, galvanized, and Galvalume price history. You can only view this interactive graphic when you are logged into the website and reading the newsletter there. If you need help navigating the website or need to know your login information, contact us at info@SteelMarketUpdate.com or by calling 800-432-3475.

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