SMU Price Ranges & Indices: New High for Hot Rolled at $1,900

The average spot market price for hot rolled coil reached a notable new benchmark this week at $1,900 per ton, according to Steel Market Update’s check of the market on Monday and Tuesday. That’s an astounding 78% higher than the previous record of $1,070 per ton seen in the summer of 2008. Prices for flat rolled and plate showed some mixed signals last week, but all registered modest increases again this week, except for Galvalume, which was unchanged. (Reports of unusually low HRC offers from one mill in the East were considered outliers and not included in the calculation of this week’s average because of the relatively small tonnage that mill is capable of producing.) Voices speculating that prices are approaching a peak have gained some volume of late, but the numbers haven’t joined that chorus just yet. While there appears to be some narrowing in the size of the changes from week to week, the direction is still generally upward. SMU’s Price Momentum Indicators continue to point toward higher prices over the next 30 days.

Hot Rolled Coil: SMU price range is $1,880-$1,920 per net ton ($94.00-$96.00/cwt) with an average of $1,900 per ton ($95.00/cwt) FOB mill, east of the Rockies. The lower end of our range increased $40 per ton compared to one week ago, while the upper end decreased $20. Our overall average is up $10 per ton from last week. Our price momentum on hot rolled steel is Higher, meaning prices are expected to rise in the next 30 days.