Steel Price Vastly Undervalued

The latest ‘This Week in Steel” report published by Steel Reality noted in the price model page that spot market prices of Hot Rolled Steel have now fallen to the lowest level in over two years.

Spot prices were estimated to be at $638/ton for this model making hot rolled steel nearly $75 less than fair market value. Other products such as plate and rebar have held up much better than flat rolled steel, due to the current overcapacity of flat rolled production.

Compared to global prices of flat rolled steel, prices in the US have moved down to levels now associated with the opportunity of increased exports going forward. Imports continue to arrive at high levels in July and August, though going forward these arrivals will start to decline just as US mills look for other markets to absorb excess production.

via WSJ: Steel Price Vastly Undervalued.

Related posts:

1. Steel Price Momentum Pushes Lower as Hot Rolled Prices Sink
2. U.S. Steel Mills Attempt to Halt Sliding Steel Prices
3. Flat Rolled Steel Prices to Move Lower from Here
4. Steel Price Softens as Supply Solidifies – WSJ.com
5. Steel prices decline in all regions during October