Thanks for your interest in learning more about SMU’s prices.
Below are links with comprehensive information on all aspects of pricing.
Price Methodology
These documents provide in-depth detail on the following:
And here is an executive summary if you’re just looking for the basics:
Steel Market Update collects data on transactions that have occurred within a few days of our indices being published as well as the “bid” and “ask” price negotiations between buyers and sellers of steel. Contract pricing and “bucket” deals are not considered in our spot price analysis.
We collect prices from manufacturing companies and distributors (service centers and wholesalers) and only use mills to confirm specific pricing points or for clarification.
Data is collected via phone calls, emails and our weekly surveys. The minimum order quantity we consider is 20 tons, and there is no maximum quantity.
SMU applies an outlier filter based on one standard deviation from the average of all prices collected. In practical terms, that means we consider all price submissions. But the upper 16% and lower 16% are flagged as potential outliers.
SMU collects prices, lead times and other data from the market every Monday and Tuesday. The collection period ends at 4 pm ET on Tuesday. And SMU typically settles prices by 5 pm ET on Tuesday. Any prices received after 4 pm ET on Tuesday are considered for the pricing session the following week.
Holidays
We will keep prices unchanged if a public holiday, or observation of a public holiday, falls on a Tuesday. We will then assess prices as usual on the following Tuesday.
How does that work in practice? Christmas Eve and Christmas Day fall on a weekend this year. We will observe the holiday on Mon-Tues Dec 26-27, and our offices will be closed. We won’t update prices that week, meaning we’ll hold prices where they were on Tues, Dec. 20. We’ll then update prices again on Tues, Jan. 3.
SMU Flat Rolled Coil and Plate Indices are FOB Mill, east of the Rockies. This means we receive price data from the Southeast, Midwest, East Coast, and central and eastern Canada. We do not consider data from West Coast mills because of significant variation in pricing and freight in that region compared to the rest of the U.S.
Hot rolled coil: Pricing is based on a minimum order quantity of 20 tons (no maximum) of ASTM A1011 Commercial Steel (C/S) base thickness and coil weights (no extras added).
Cold rolled coil: Pricing is based on a minimum order quantity of 20 tons (no maximum) of SAE 1006/1008 (or equivalent) prime annealed commercial steel (C/S) in base thickness and coil weights (no extras added).
Galvanized coil – Base Price Option: Pricing is based on a minimum order quantity of 20 tons (no maximum) of prime hot dipped galvanized coils base price (prior to extras being added).
Galvanized coil – Benchmark Option: Pricing is based on a minimum order quantity of 20 tons (no maximum) of prime coil meeting ASTM A653, commercial steel (C/S) with a minimum thickness of .060″ X 48″ to 60″ in width, large PIW coils (no weight extras) with a zinc coating weight of G90.
Galvalume coil – Base Price Option: Pricing is based on a minimum order quantity of 20 tons (no maximum) of prime hot dipped Galvalume coils meeting ASTM A792 base price (prior to extras being added).
Galvalume coil – Benchmark Option: Pricing is based on minimum order quantity of 20 tons (no maximum) of prime hot dipped Galvalume coils meeting ASTM A792 in thickness .0142″ AZ50, Grade 80 in widths over 40″ and large coils (no other extras).
Plate: Pricing is based on a minimum order quantity of 20 tons (no maximum) of A36 discrete plate, base thickness and width (no extras added).
Lead times: SMU defines lead times as the period between when an order is placed and when that order is produced. The time for local freight to a buyer’s location, for example, is not included.
SMU Scrap Prices
We collect pricing information on three kinds of scrap: shredded scrap, busheling scrap and heavy melt. Scrap prices are expressed in gross tons.
We update our scrap prices once a month after the market has settled. Scrap prices typically settle in the second week of the month.
Our scrap specifications broadly follow guidelines published by the Institute of Scrap Recycling Industries (ISRI). They are as follows:
Shredded scrap: Homogenous iron and steel scrap, magnetically separated, originating from shredded automobiles.
Busheling scrap: Clean steel scrap from industrial processes such as automotive stamping. Does not include old automotive bodies.
Heavy melt: Wrought iron and/or steel scrap. Prepared in a manner to ensure compact charging.