SMU Price Ranges & Indices: Breaking Out from Holiday Duldrums

After treading water through the Christmas and New Year Holidays, and then pushed by the most recent price increase announcements (+$40 on flat rolled and +$50 on plate), we are seeing steel prices moving higher by an average of $10 to $20 per ton. The expectation by most steel buyers (not all) is for higher prices in the coming weeks as scrap prices rise and the uncertainty of a Section 232 decision begins to grow (the report is due to the president by Jan. 16).

Many steel buyers referenced price offers out of the domestic mills at $35.00/cwt to $36.00/cwt on hot rolled and $44.00/cwt to $45.00/cwt on cold rolled and coated steels. However, few buyers admitted to paying those kinds of numbers. The commercial officer of one mill told SMU that they were “pushing for a minimum of $42, but it is a hard slog for certain customers to accept such levels for February since that is a seasonally weak consumption month.” The mill went on to say, “Consequently, pricing is being debated fiercely.” This mill expects pricing to run up “substantially” in March and April, and those customers who procrastinated may be hard pressed to find a “good deal.”