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.