Final Thoughts

The runup in steel prices continues unabated with benchmark hot rolled prices now averaging $1,080 per ton. The $1,080 number on hot rolled is the highest in our history (we reported $1,070 back in July 2008). Steel buyers should note that even as we bust through our past record high, we believe prices will still move higher from here as there is nothing immediate that will affect pricing momentum, which is clearly on the side of the steel mills.

One thing that I find interesting as we canvass steel buyers is their belief that prices cannot go much higher than where they are today. In our most recent survey, we found 48 percent of the respondents reporting prices would peak at numbers below the $1,080 per ton we reported this evening. We are already collecting data that has HRC offers out there close to $1,200 per ton ($60.00/cwt). Yet, only 23 percent of the steel buyers believe spot prices will exceed $1,100 per ton….