SMU Price Ranges & Indices: Still Moving

In case there is some confusion, flat rolled steel prices are moving higher and, with today’s announcement by ArcelorMittal it is only a matter of time before benchmark hot rolled breaches $600 per ton and cold rolled and coated breach $800 per ton (base plus extras). It has been a very difficult market to gauge as we have a wide range of prices provided to us on a weekly basis. Normally, that is not an issue because price changes tend to be minor from week to week. However, now is not a normal time and you can have a $37.00/cwt base price for coated on Thursday and by Tuesday the mill is closed and not offering anything. So, what is the true price on Tuesday – $37.00/cwt or something else?

When we have times like this, when market prices can actually change on a daily basis as one mill opens their order book and another closes theirs, this is the time when our publisher (John Packard) relies on the personal relationship developed over many years of actually buying and selling steel. These one on one contacts afford us the opportunity to discuss not only where offers are from each mill but where transactions are being made.