Prices
January 18, 2022
SMU Price Ranges & Indices: The Downtrend Continues
Written by Brett Linton
Steel Market Update’s check of the market this week shows a few hot rolled transactions at prices below $1,400 per ton ($70 per cwt) as flat-rolled steel prices continue their correction from record highs last year. The average price for HRC dropped by another $55 per ton in the past week to $1,425 per ton. Prices for coated products also saw double-digit declines. Cold rolled and plate prices were relatively flat, based on SMU’s sample of the market on Monday and Tuesday. The four-month trend of weakening steel prices would be more alarming were it not for a general consensus that steel demand remains relatively healthy in the first quarter. SMU’s price momentum indicators are pointing Lower for all flat-rolled products, which are expected to see further declines in the next 30 days. SMU’s Momentum Indicator on plate remains at Neutral until the market establishes a clearer direction.
Hot Rolled Coil: SMU price range is $1,350-$1,500 per net ton ($67.50-$75.00/cwt) with an average of $1,425 per ton ($71.25/cwt) FOB mill, east of the Rockies. The lower end of our range decreased $50 per ton compared to one week ago, while the upper end declined $60 per ton. Our overall average is down $55 per ton from last week. Our price momentum on hot rolled steel is at Lower, meaning we expect prices to decrease over the next 30 days.
