SMU Data and Models
October 20, 2019
SMU Market Trends: Where's the Bottom for Steel Prices?
Written by Tim Triplett
Except for a brief uptick this summer, steel prices have been on the decline since March and breached the $500 per ton level in mid-October—a psychological line in the sand that leaves steel buyers wondering: Have prices hit bottom? Is it time to replenish inventories?
Flat rolled steel prices took a steep dive last month, with hot rolled coil dropping below $500 for the first time since early November 2016. Steel Market Update’s survey of the market placed the average price for spot orders of hot rolled at $480 per ton ($24.00/cwt) FOB the mill east of the Rockies with lead times of just 2-4 weeks. Similarly, cold rolled dropped to $670 per ton ($33.50/cwt) with lead times from the mills of 3-8 weeks. The benchmark price for 0.060-inch G90 galvanized steel declined to an average of $739 per ton delivered with lead times of 5-8 weeks. The price of steel plate was unchanged in October at an average of $675 per ton ($33.75/cwt) delivered to the customer’s facility within 4-6 weeks.
