Steel Products Prices North America

SMU Price Ranges & Indices: Prices Move Higher

Written by John Packard

January 2, 2018

Flat rolled steel prices moved higher over the past week. Hot rolled offers are reaching (or exceeding) $700 per ton, while cold rolled and coated offers are moving into the low to mid $800s (base pricing, before extras). Steel buyers seemed resigned to paying higher numbers with many waiting to see what will happen with prices (and supply) should President Trump make a strong move in support of the steel industry when he comes out with his Section 232 decision. (He has 90 days to make his decision known). The market is watching foreign steel arrivals and offers for signs of a tightening in the supply chain.

We are also watching the inventories at service centers, which SMU pegged at 3 months of supply for flat rolled in both our “Flash” (reported a few days into the month of January) and our full report (which was reported over the weekend). Today, the Metals Service Center Institute (MSCI) came out with carbon flat rolled at 2.8 months’ supply, up from 2.3 months at the end of November.

SMU believes that with a strong shipment month in January, coupled with lower inflows of foreign sheet steels, it will only be a matter of time before supply tightens and prices move higher. For this reason, we have our SMU Price Momentum Indicator at Higher.

Here is how we see prices this week:

Hot Rolled Coil: SMU price range is $650-$710 per ton ($32.50/cwt-$35.50/cwt) with an average of $680 per ton ($34.00/cwt) FOB mill, east of the Rockies. The lower end of our range increased $15 per ton compared to one week ago, while the upper end rose $10 per ton. Our overall average is up $12.50 compared to last week. Our price momentum on hot rolled steel is now pointing to Higher indicating prices are expected to increase over the next 30-60 days.

Hot Rolled Lead Times: 3-6 weeks

Cold Rolled Coil: SMU price range is $810-$880 per ton ($40.50/cwt-$44.00/cwt) with an average of $845 per ton ($42.25/cwt) FOB mill, east of the Rockies. The lower end of our range increased $25 per ton compared to last week, while the upper end remained the same. Our overall average is up $12.50 per ton compared to one week ago. Our price momentum on cold rolled steel is now pointing to Higher indicating prices are expected to increase over the next 30-60 days.

Cold Rolled Lead Times: 5-8 weeks

Galvanized Coil: SMU base price range is $39.50/cwt-$44.00/cwt ($790-$880 per ton) with an average of $41.75/cwt ($835 per ton) FOB mill, east of the Rockies. The lower end of our range increased $10 per ton compared to one week ago, while the upper end remained the same. Our overall average is up $5 per ton compared to last week. Our price momentum on galvanized steel is now pointing to Higher indicating prices are expected to increase over the next 30-60 days.

Galvanized .060” G90 Benchmark: SMU price range is $876-$966 per net ton with an average of $916 per ton FOB mill, east of the Rockies.

Galvanized Lead Times: 4-12 weeks

Galvalume Coil: SMU base price range is $39.50/cwt-$44.50/cwt ($790-$890 per ton) with an average of $42.00/cwt ($840 per ton) FOB mill, east of the Rockies. The lower end of our range decreased $30 per ton compared to last week, while the upper end increased $30 per ton. Our overall average is unchanged compared to one week ago. Our price momentum on Galvalume steel is now pointing to Higher indicating prices are expected to increase over the next 30-60 days.

Galvalume .0142” AZ50, Grade 80 Benchmark: SMU price range is $1,081-$1,181 per net ton with an average of $1,131 per ton FOB mill, east of the Rockies.

Galvalume Lead Times: 6-8 weeks

Plate: SMU price range is $740-$800 per ton ($37.00/cwt-$40.00/cwt) with an average of $770 per ton ($38.50/cwt) FOB delivered. The lower end of our range rose $20 per ton compared to one week ago, as did the upper end of our range. Our overall average is up $20 per ton compared to last week. Our price momentum on plate steel is now pointing to Higher indicating prices are expected to increase over the next 30-60 days.

Plate Lead Times: 5-7 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.

John Packard

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