SMU Price Ranges & Indices: Spread Tightens

Flat rolled steel prices continue to be firm as supply issues haunt the northern steel mills and lead times remain extended at most mills throughout the eastern United States and Canada. US Steel has issues with receiving raw materials into their Gary Works facility which has slowed steelmaking operations to approximately 50 to 75 percent of capacity. USS Great Lakes steelmaking operations are not yet back to running and repairs have not yet been made to the partially collapsed roof over their #2 BOP.

The net result has been a tightening in the spreads from high to low on a number of flat rolled steels. We believe prices will continue to move higher – albeit at a slower pace than what we have seen over the past four weeks (assuming no new production issues). We understand some mills are quoting steel above the $680 HRC and $815 base CRC and coated as they try to collect the highest spot prices possible on a customer by customer basis.