SMU Price Ranges & Indices: March Steel Prices Come in Like a Lion

Steel prices took another bite out of the record books in March. The advent of March shows flat rolled and plate steel prices are still roaring upwards, with hot rolled hitting another record high of $1,240 per net ton, according to Steel Market Update’s check of the market this week. Prices generally moved up in a range from $10-30 per ton. Galvalume, which is in particularly short supply, jumped by $50, buyers reported. There’s no relief in sight from lead times stretching to 12 weeks or more. Ferrous scrap prices are expected to see a big leap of $40-70/GT in March, which will only add momentum to rising finished steel prices. The trend is concerning for steel buyers. “Lack of availability is hindering our ability to meet customer demand,” commented one service center executive. “Steel is just too expensive, I don’t know how much longer we can operate with these numbers from the mills,” said an OEM. “We are hearing universally now that customers are getting very nervous about their credit lines and the cost of materials derailing consumer demand,” said another source. Usually, as the old saying goes, when March weather comes in like a lion it leaves like a lamb, but it remains to be seen if steel prices follow the same pattern. Steel Market Update’s Price Momentum Indicators continue to point toward higher steel prices in the next 30 days.

Here is how we see prices this week: