Trade Cases
SMU Price Ranges: Sheet Continues Strong Start to ‘23
Written by Michael Cowden
January 10, 2023
Sheet prices continued their upward trek this week on the heels of a $50-per-ton price increase announced by Nucor Corp. on Monday. Plate prices, which were not impacted by that move, were unchanged.
Nucor’s increase, which matched one announced last month by Cleveland-Cliffs Inc., was seen by market participants as timed to reflect an upward movement in January scrap prices. It also coincided with more buyers returning to the market in earnest after the holidays.
SMU’s hot-rolled coil price now stands at $735 per ton ($36.75 per cwt), up 5.8% from $695 per ton last week and up nearly 15% from $640 per ton a month ago. Cold-rolled and coated prices also rose, although some sources noted that coated tags weren’t as strong as cold rolled given widespread availability at certain mills.
Our sheet pricing momentum indicators continue to point toward upward while our plate momentum indicator remains at neutral.
Hot-Rolled Coil: The SMU price range is $690–780 per net ton ($34.50–39.00/cwt), with an average of $735 per ton ($36.75/cwt) FOB mill, east of the Rockies. Both the lower and upper ends of our range increased $40 per ton compared to one week ago. Our overall average is up $40 per ton from one week ago. Our price momentum indicator on hot-rolled steel points to Higher, meaning we expect prices to increase over the next 30 days.
Hot-Rolled Lead Times: 4–7 weeks
Cold-Rolled Coil: The SMU price range is $890–980 per net ton ($44.50–49.00/cwt) with an average of $935 per ton ($46.75/cwt) FOB mill, east of the Rockies. The lower end of our range increased $30 per ton compared to one week ago, while the upper end increased $10 per ton. Our overall average is up $20 per ton from one week ago. Our price momentum indicator on cold-rolled steel points to Higher, meaning we expect prices to increase over the next 30 days.
Cold-Rolled Lead Times: 5–9 weeks
Galvanized Coil: The SMU price range is $880–970 per net ton ($44.00–48.50/cwt) with an average of $925 per ton ($46.25/cwt) FOB mill, east of the Rockies. The lower end of our range increased $20 per ton compared to one week ago, while the upper end increased $30 per ton. Our overall average is up $25 per ton from one week ago. Our price momentum indicator on galvanized steel points to Higher, meaning we expect prices to increase over the next 30 days.
Galvanized .060” G90 Benchmark: SMU price range is $977–1,067 per ton with an average of $1,022 per ton FOB mill, east of the Rockies.
Galvanized Lead Times: 5–9 weeks
Galvalume Coil: The SMU price range is $900–960 per net ton ($45.00-48.00/cwt) with an average of $930 per ton ($46.50/cwt) FOB mill, east of the Rockies. The lower end of our range increased $20 per ton compared to one week ago, while the upper end increased $30 per ton. Our overall average is up $25 per ton from one week ago. Our price momentum indicator on Galvalume steel points to Higher, meaning we expect prices to increase over the next 30 days.
Galvalume .0142” AZ50, Grade 80 Benchmark: SMU price range is $1,194–1,254 per ton with an average of $1,224 per ton FOB mill, east of the Rockies.
Galvalume Lead Times: 5–9 weeks
Plate: The SMU price range is $1,400–1,480 per net ton ($70.00–74.00/cwt) with an average of $1,440 per ton ($72.00/cwt) FOB mill. Both the lower and upper ends of our range remained unchanged compared to one week ago. Our overall average is unchanged from one week ago. Our price momentum indicator on steel plate is Neutral, meaning we expect prices to remain stable over the next 30 days.
Plate Lead Times: 4–7 weeks
SMU Note: Below is a graphic showing our hot rolled, cold rolled, galvanized, Galvalume, and plate price history. This data is available here on our website with our interactive pricing tool. If you need help navigating the website or need to know your login information, contact us at info@SteelMarketUpdate.com.
By Michael Cowden, Michael@SteelMarketUpdate.com
Michael Cowden
Read more from Michael CowdenLatest in Trade Cases
Price on Trade: IEEPA tariffs head to the Supreme Court, DOJ ramps up trade enforcement
International trade law and policy remain a hot topic in Washington and beyond this week. We are paying special attention to the ongoing litigation of the president’s tariff policies and the administration’s efforts to heighten trade enforcement.
Mexico considers stiff tariffs for steel, autos, and other imports
Mexico is considering imposing steep tariffs on imports of steel, automobiles, and over 1,400 other products. Its target? Countries with which it does not have free trade agreements, mainly China, India, Thailand, and other South Asian nations.
Leibowitz: With ‘reciprocal’ tariffs struck down again in court, what happens next?
President Trump’s “reciprocal” tariffs under the International Emergency Economic Policy Act (IEEPA) were struck down again, this time on Aug. 29 by the Court of Appeals for the Federal Circuit (CAFC). The legal and policy mess continues, with the next stop being the US Supreme Court.
Market unfazed by US circuit court’s IEEPA decision
Repealing any reciprocal tariffs placed by President Donald Trump on US imports of direct reduced iron (DRI), iron ore, hot-briquetted iron (HBI), and pig iron would have only a nominal impact on the US steel market, market participants said.
ITC votes to keep HR duties after sunset review
The US government determined this week that hot-rolled steel imports from a handful of countries continue to threaten the domestic steel industry.