SMU Price Ranges & Indices: More Weakness in Hot Rolled & Cold Rolled

We are adjusting our hot rolled range to $480-$540 per ton which takes our average to $510 per ton. Our average is $5 per ton lower than what we published on Tuesday and we are down $10 per ton compared to last week. We do want to note that we are finding few offers at the upper level ($540) of our range and the trend indicates a move toward consolidating prices right around the $500-$510 mark this week. Momentum is for hot rolled prices to continue to move lower over the next 30 days.

As we continue to collect data from steel buyers we are also finding cold rolled numbers as published on Tuesday were slightly over-stated. We are reducing the lower end of our range from $710 down to $700 per ton ($35.00/cwt) and the upper end of our range from $760 down to $750 per ton ($37.50/cwt). Our average is now $725 per ton down $10 per ton from Tuesday’s number and $35 per ton lower than one week ago. Momentum is for CR prices to move lower over the next 30 days.

We are not touching our galvanized and Galvalume numbers at this time although momentum on both of these products is for prices to move lower over the next 30 days.

We will have to watch to see if the new circumvention complaint against Vietnam/China will have any effect on CR and GI/AZ pricing. The first thing to watch are lead times at the domestic mills, especially the conversion mills and mini-mills.