Prices have fallen from near $900/ton for hot rolled coils to levels now under $700 according to the most recent view by Platts.
Steel price momentum is one of the models used by Steel Reality to analyze the flat rolled steel market.
Recent steel mill earnings announcements have noted falling prices with some looking for current spot market prices to be near a bottom.
This dramatic decline now has steel prices lower than fair value, as determined by one of our other price models. The question on where steel prices go from here has some very interesting answers. In the past 18 months, steel prices have risen to $190 over fair value (past March) and have fallen to $70 below fair value (October & November of 2010). As of today, they are currently around $40 below fair value, threatening to create a margin squeeze at steel mills.