SMU Data and Models
November 18, 2021
SMU Channel Check: Market Divided - Gradual Decline or Collapse?
Written by Tim Triplett
With relatively few exceptions, buyers tell Steel Market Update they sense the market is changing, and they expect steel prices to continue falling – though most expect the declines to be gradual. Their views are likely informed by price trends to date, which have been incremental, at least so far. The average price of hot rolled steel has seen declines of just $10-25/ton per week since topping out at $1,955 per ton in early September. The current average HR price of $1,830 per ton is off 6.4% from that recent high.
Many buyers have strong opinions about the direction of the market as the new year approaches. SMU’s questionnaire this week elicited the following insights:
