Steel Prices at Lowest Levels Since 2020

Steel sheet prices have reached their lowest levels since the end of 2020. The price of hot roll coil as of November 9 was $669/ton and cold rolled dipped below $950/ton.

Steel sheet prices continue to trend lower due to slower demand and ample supply.

By comparison, steel plate prices, while down 10% year-to-date, are not declining as rapidly. The pricing spread between plate and hot-rolled coil is above $900, which is very high compared with historic levels of $200-$300.

Some in the market attribute the elevated plate prices to lower volume of production compared to sheet.

Steel Bar Prices Hold Steady

Pricing trends for steel bar products are holding steady in November. Raw material surcharges have softened in recent months with the anticipation they will remain flat over the near term.

Lead times steel bar products remain relatively good, except for thermally treated products. High demand levels for these products have pushed lead times out, in some cases to the end of the first quarter of next year.

Is There a Freight Recession?

Talk of a freight recession in recent months has yet to come to fruition. According to DAT Freight & Analytics, nearly all freight marketing indicators show demand levels higher than the previous year and substantially higher compared to 2018.

In a recent update, DAT pointed to data from Michigan State University (MSU) that shows demand rebounding sharply in August on both a not-seasonally adjusted and seasonally adjusted basis. According to MSU, ton miles in August 2022 were the highest in the history of U.S. trucking.

Stainless Surcharges Declining

Stainless surcharges are down in November compared to October levels. This is due to declines in the price of key ingredients in the production of stainless, including chrome and silicon.

The one exception is the rise in the price of molybdenum, which has offset some of the decline in the surcharge of 316 grades.

SteelNOW-ledge

The decision to use one metal over another is unique to each project, but aluminum bar is often selected for its strength, corrosion resistance, and workability.

These properties make it a good choice for a variety of applications. For example, a contractor might value corrosion resistance as they source aluminum for a construction project. A metal fabricator might seek aluminum bar stock to process into parts and assemblies via welding or joining.

Find out more here.