October Market Minute 2023

Shifts in Steel Pricing, Lead Times

Hot-rolled coil (HRC) carbon steel prices reached their lowest point of the year in September before rising slightly. As of October 18, the HRC price was $714/ton.

Cleveland-Cliffs, North America's largest flat-rolled steel producer, made a notable announcement towards the end of Q3, establishing a minimum base price for hot-rolled steel at $750/ton.

This move prompted most mills to follow suit by quoting the same base price for hot-rolled steel.

The price differential between plate and HRC has surged recently as HRC prices decrease while plate prices remain elevated, resulting in a $788/ton spread.

How about lead times? As of mid-October, they are extended, and supply conditions have tightened due to year-end outages, which could further impact prices in the coming months.

What Does a “Freight Recession” Mean for Metal Buyers?

In what some have deemed a “freight recession,” there seems to be a thinner pool of freight carriers. Many have cited soaring diesel prices as the reason for exiting the market.

As of mid-October, the national average for diesel prices was $4.456. While that is down from $5.271 a year ago, it is up 18% from July to September.

For metal buyers, this trend poses challenges. With fewer carriers available, competition for shipping services decreases, potentially leading to higher prices per load. Finding carriers willing to transport metal can also become more complex.

In this evolving environment, partnering with reliable providers like SteelNow becomes essential. We offer fast delivery, often within 24 hours, for in-stock materials, helping metal buyers navigate the challenges the evolving trucking market poses.

Need help getting metal fast? Click here to call, text, or chat with SteelNow.