SMU Price Ranges & Indices: Sideways But Firm

U.S. and Canadian steel mills continue to keep a firm grip on pricing as supply (production) related problems keep lead times extended on most products. We are seeing the impact of foreign galvanized and Galvalume imports influencing at least one coated steel mill in the South. Domestic buyers appear to be accepting the higher prices but, they do not appear willing to build inventory at these price levels. They are buying only what they have for immediate needs or, they are looking at foreign as an alternative. Our SMU Price Momentum Indicator continues to point toward higher steel prices over the next 30 days. Although, we do not expect any large swings in pricing unless there is either a surge of steel production (due to USS Great Lakes and Gary coming back to full production) or if production issues at ArcelorMittal are more severe than what we believe to be the case (Cleveland C-5 blast furnace and Indiana Harbor furnace going down in June). Our opinion is prices should remain firm through the end of May. Scrap prices, which just dropped on shredded scrap but remained about the same on prime grades, are expected to retreat in June which could put pressure on steel prices.

Here is how we are seeing steel mill spot prices this week:

Hot Rolled Coil: SMU Range is $670-$700 per ton ($33.50/cwt- $35.00/cwt) with an average of $685 per ton ($34.25/cwt) FOB mill, east of the Rockies. Both the lower and upper ends of our range remained the same compared to last week. Our average is unchanged compared to last week. Our expectation is for hot rolled pricing to move higher over the next 30 days.

Hot Rolled Lead Times: 5-7 weeks.

Cold Rolled Coil: SMU Range is $800-$820 per ton ($40.00/cwt- $41.00/cwt) with an average of $810 per ton ($40.50/cwt) FOB mill, east of the Rockies. Both the lower and upper ends of our range remained the same compared to last week. Our average is unchanged compared to last week. SMU anticipates cold rolled prices will move higher over the next 30 days.

Cold Rolled Lead Times: 6-9 weeks.

Galvanized Coil: SMU Base Price Range is $800-$820 per ton ($40.00/cwt- $41.00/cwt) with an average of $810 per ton ($40.50/cwt) FOB mill, east of the Rockies. The lower end of our range increased by $10 per ton compared to last week while the upper end increased by $5 per ton. Our average is now $7.50 per ton higher compared to last week. SMU anticipates galvanized base prices will trend higher over the next 30 days.

Galvanized .060” G90 Benchmark: SMU Range is $860-$880 per ton with an average of $870 per ton FOB mill, east of the Rockies.

Galvanized Lead Times: 5-9 weeks.

Galvalume Coil: SMU Base Price Range is $790-$820 per ton ($39.50/cwt- $41.00/cwt) with an average of $805 per ton ($40.25/cwt) FOB mill, east of the Rockies. Both the lower and upper ends of our range remained the same compared to last week. Our average is unchanged compared to last week. Our expectation is for Galvalume prices to move higher over the next 30 days.

Galvalume .0142” AZ50, Grade 80 Benchmark: SMU Range is $1081-$1111 per ton with an average of $1096 per ton FOB mill, east of the Rockies.

Galvalume Lead Times: 5-9 weeks.

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