Steel Prices face further downward pressure as extra supply looms

The Raw Steels Monthly Metals Index (MMI) fell by 5.08% from October to November. A number of factors played into steel prices dropping.

After U.S. steel prices appeared to flatten, the descent for hot rolled coil, cold rolled coil, and hot dipped galvanized prices accelerated throughout October. Hot rolled coil prices now sit at their lowest level since November 2020. Plate prices, however, remain sideways, experiencing only modest declines throughout October.

American steel giant Nucor announced no change in discrete plate prices for December, meaning they will hold at $1,620/st. This marks the second consecutive month that Nucor kept prices flat after the company lowered them by $120/st in mid-September.

As flat rolled steel prices remain in free fall, plate prices continue to diverge from the larger trend. Since plate prices peaked nearly seven months ago, they have so far declined only 14.76%. For comparison, HRC prices fell a whopping 52.69% during that same period.

For months, buyers have complained about the widening spread between the two commodities. Until HRC prices peaked in October 2021, plate prices averaged around $107/st over HRC. However, that average has since ballooned to almost $600/st, with the current spread sitting at an all-time high of $1,014/st.