Final Thoughts
January 29, 2021
Final Thoughts
Written by Tim Triplett
Steel Market Update’s check of the market this week puts the benchmark price for hot rolled at $1,180 per net ton. The spot market continues to set new highs for the HR price, which in the second week of January topped the old record of $1,070 per ton reported by SMU in 2008. It has set new records five times since then and continues to fuel speculation on how much higher it can go.
SMU continues to poll the market on the subject, and the current consensus among steel buyers is that the market is likely to peak around $1,200 per ton—that would be just $20 more—and that the peak will likely come in February or March. There’s no way to know that for sure, of course, and just because the price quits rising does not necessarily mean it’s doomed for a big fall.
