Steel Products Prices North America

Hot Rolled vs Plate Steel Prices: Plate Premium Rises to 46%

Written by Brett Linton

June 3, 2022

Sheet steel prices continue to decline from the March/April bump, while plate prices are easing at a slower rate, according to SMU’s price indices published last Tuesday. Plate prices typically carry a premium over hot rolled prices because plate is a value-added product and requires more time on the mill.

Hot rolled coil averaged $1,255 per ton ($62.75 per cwt) last week and has declined each of the past six weeks. Recall our index had reached a 14-month low of $1,000 per ton in the first week of March, following a record-high $1,955 per ton in September 2021. Our latest plate index averaged $1,830 per ton last week, declining each of the past three weeks. In that time, plate prices have declined $110 per ton from the $1,940 high seen on May 10. Plate prices have been much more stable compared to sheet prices, with our plate index remaining within $80 per ton of $1,880 for over eight months.

Throughout 2017 and the first half of 2018, plate prices held a roughly $100-per-ton premium over hot rolled. That premium crept up after mid-2018 to reach a high of $325 per ton by February 2019, declining thereafter until it diminished and hot rolled begain to sell at a higher price in October 2020. HRC held onto that premium until November 2021, losing it after sheet prices began declining in October and plate prices stood firm. The plate premium surged to $820 per ton in the first week of March of this year, quickly receding to $410 by the end of the month. For the past four weeks, plate has held a $575 per ton premium over hot rolled. The average premium held by plate over HRC for 2022 year-to-date is now $535 per ton.

To better compare this price spread, we graphed the plate price premium over hot rolled as a percentage of the hot rolled price. This is an attempt to paint a clearer comparison against historical pricing data. Plate prices held an average premium of 16% over hot rolled in 2017, peaking at a 56% premium in June 2019. The premium declined from there and turned negative in October 2020 (when HR began to sell at a higher price than plate), falling to a low of -17% in June 2021. Plate regained its premium price in November 2021, surging to a record high premium of 82% in the first week of March and falling to 29% by the end of the month. The latest plate premium is 46%, having risen each of the past nine weeks, and 2022 now averages 43% YTD.

By Brett Linton, Brett@SteelMarketUpdate.com

Brett Linton

Brett Linton is a senior analyst for Steel Market Update, where he began his career. Linton has been in the steel industry since 2010. He has held roles as a category manager and strategic insights director at Reibus before returning to SMU in 2024. He is a graduate of The University of North Georgia with a degree in Finance and Accounting. Brett can be reached at brett@steelmarketupdate.com or 724-314-0179.

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