Steel Products Prices North America

SMU Price Ranges & Indices: Probably the Bottom

October 24, 2017

It has only been one week since ArcelorMittal USA increased flat rolled steel prices. As the week progressed, it became obvious that steel mills were reacting to the price announcements in different ways. We heard from steel buyers that some mills withdrew open quoted pricing and repriced at new levels at least $40 per ton higher. Other steel buyers advised their suppliers have not increased prices and were taking orders at prices being quoted prior to the AMUSA announcement through the end of the week.

The SMU Price Momentum Indicator continues to be Neutral. This suggests that we are not yet sure how prices will trend over the coming days – although our expectation is we will see slightly higher prices, especially as lead times slip into the New Year.

Here is how we see prices this week:

Hot Rolled Coil: SMU price range is $560-$600 per ton ($28.00/cwt-$30.00/cwt) with an average of $580 per ton ($29.00/cwt) FOB mill, east of the Rockies. The lower end of our range remained unchanged compared to one week ago, while the upper end declined $10 per ton. Our overall average is down $5 per ton compared to last week. Our price momentum on hot rolled steel is pointing to Neutral indicating prices are expected to remain steady over the next 30 days.

Hot Rolled Lead Times: 2-5 weeks

Cold Rolled Coil: SMU price range is $710-$800 per ton ($35.50/cwt-$40.00/cwt) with an average of $755 per ton ($37.75/cwt) FOB mill, east of the Rockies. The lower end of our range declined $40 per ton compared to last week, while the upper end declined $10 per ton. Our overall average is down $25 per ton compared to one week ago. Our price momentum on cold rolled steel is pointing to Neutral indicating prices are expected to remain steady over the next 30 days.

Cold Rolled Lead Times: 4-8 weeks

Galvanized Coil: SMU base price range is $36.50/cwt-$40.00/cwt ($730-$800 per ton) with an average of $38.25/cwt ($765 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. Our overall average is the same compared to last week. Our price momentum on galvanized steel is pointing to Neutral indicating prices are expected to remain steady over the next 30 days.

Galvanized .060” G90 Benchmark: SMU price range is $808-$878 per net ton with an average of $843 per ton FOB mill, east of the Rockies. A note to our readers who also review other galvanized indexes: Right now, not all indexes are using the same G90 zinc coating extra on benchmark .060″ material. SMU uses $78 per ton, while at least one other index is using $86 per ton, which reflects the price change made by NLMK USA. SMU has not yet made a change as we wait for U.S. Steel, ArcelorMittal USA and Nucor to make adjustments to their extras.

Galvanized Lead Times: 3-8 weeks

Galvalume Coil: SMU base price range is $38.00/cwt-$40.00/cwt ($760-$800 per ton) with an average of $39.00/cwt ($780 per ton) FOB mill, east of the Rockies. Both the lower and upper ends of our range remained the same compared to last week. Our overall average is the same compared to one week ago. Our price momentum on Galvalume steel is pointing to Neutral indicating prices are expected to remain steady over the next 30 days.

Galvalume .0142” AZ50, Grade 80 Benchmark: SMU price range is $1,051-$1,091 per net ton with an average of $1,071 per ton FOB mill, east of the Rockies.

Galvalume Lead Times: 5-8 weeks

Plate: SMU price range is $620-$680 per ton ($31.00/cwt-$34.00/cwt) with an average of $650 per ton ($32.50/cwt) FOB delivered. Both the lower and upper ends of our range remained the same compared to one week ago. Our overall average is the same compared to last week. Our price momentum on plate steel is pointing to Neutral indicating prices are expected to remain steady over the next 30 days.

Plate Lead Times: 3-5 weeks

SMU Note: Below is a graphic showing our hot rolled, cold rolled, galvanized, Galvalume, and plate price history. To use the graph’s interactive capabilities, you must view it on our website here. If you need help navigating the website or need to know your login information, contact us at info@SteelMarketUpdate.com or 800-432-3475.