Current situation:
- NYMEX domestic hot-rolled coil steel prices were $1,066 per ton for January futures ($885 per ton in the last update).
- Producer prices for steel pipe and tube were up 1.1% month-over-month in December (up 0.4% last month). Year-over-year, prices are 1.8% higher (6.7% lower Y/Y last month).
Key factors that could affect supply or price:
- After a period of fairly stagnant raw material pricing, HRC (hot rolled coil, the basis of welded steel pipe) costs have risen over 35% over Q4 2020. Steel pipe inventories have been stretched and lead times have increased at an alarming rate. China is now allowing scrap imports for the first time in two years, contributing to increases in scrap iron pricing.
