SMU Community Chat
December 4, 2020
CRU's Spoores: Surging HR Prices Have Room to Grow
Written by Sandy Williams
No one anticipated in August how quickly prices would go up, said CRU Principal Analyst Josh Spoores during this week’s SMU Community Chat Webinar. As four criteria lined up—steel-intensive industrial demand, low supply chain inventories, low imports, and domestic prices below global levels—steel prices in the U.S. surged at the fastest rate in 41 years, said Spoores.
As of Wednesday, CRU priced hot rolled at $761 per ton, while SMU had it at $805. Current offers are approaching the mid-$800s and the surge is likely to continue until price relief occurs in the first half of 2021, said Spoores. CRU will release a new price forecast for 2021 soon that is likely be higher, but the current average price for 2021 is forecast at $679 per short ton with a first half average of $777 per ton. HR prices are expected to fall in the second half next year to an average of $582 per ton. Cold roll and HDG will follow the trend with a spread of about $185 per ton over HR, said Spoores.
