Steel Products Prices North America
January 26, 2016
SMU Price Ranges & Indices:Value Added Products Move Higher
Written by John Packard
Hot rolled prices, which have moved $45 per ton (higher) since early December, did not move this past week. Hot rolled has been the weakest of products which both SDI and AK Steel alluded to in their earnings conference calls earlier today. However, we have seen lead times improve on cold rolled and coated steels which has helped move their prices higher. The net result is we are seeing a wider than normal spread in the base price of hot rolled vs. that of the other value added products. The historical norm is $100 to $120 per ton spread between hot rolled and galvanized base prices. So, when hot rolled is at $400 per ton the expectation is for galvanized to be $500-$520 per ton ($25.00/cwt-$26.00/cwt).
Our average for galvanized base prices this week is $555 per ton ($27.75/cwt). This represents a $150 per ton spread and that is worrying some buyers. “Hot rolled is the weak sister. That has me a little concerned right now,” is what one service center executive told us earlier today. He went on to explain that with the weak hot rolled markets this forces the mills to move more tons into the value added products which hypothetically could put pressure on those prices in the future.
