January Market Minute 2023

Sheet Up, Plate Down

In 2022, steel sheet prices declined roughly 50%, while plate prices only dropped roughly 10%. This has left a price gap between the two products of roughly $800/ton, well above the historic gap of $150-$200/ton.

So, how are these products starting off the new year?

• Domestic steel mills announced a series of price increases on sheet. This is in effort to offset rising input costs, among other factors. As of January 11, the price of hot-rolled sheet was roughly $712/ton.

• Plate prices continue to drop, hitting roughly $1,440/ton in early January. However, the rice gap between plate and hot-rolled steel remains well above the historic average.

Raw steel production remains low, with domestic mills reporting a capacity utilization rate at 71.3% in the week ending January 7, according to the American Iron and Steel Institute. This is down from the utilization rate of 79.8% in the same week last year, and slightly down from 71.8% the week prior.

Nickel Keeps Surcharges in Flux

It’s been difficult to predict exactly where nickel prices may land lately. In early November, they were around $10/lb., before jumping 50% to roughly $15/lb. by mid-December. To start 2023, nickel prices are hovering around $12/lb.

Nickel influences stainless surcharges. For instance, in January

• 304 surcharge is 1.3391

• 316 surcharge is 2.0330