Industry News

Volatility in steel prices likely to continue

Views : 78
Update time : 2024-03-14 16:58:45

What strikes me if you look at U.S. sheet prices compared to those just about anywhere else in the world is how volatile the market here is. We saw hot-rolled coil (HRC) prices increase 62% throughout Q4 2023. They then almost immediately reversed course and started falling in the new year.

Prices in other regions followed a similar pattern. But the magnitude of the volatility is unique to the U.S.

How do steel consumers in the U.S. manage a business with a raw material price that whipsaws even in times of roughly stable demand? Yes, steel is a cyclical business, and it always will be. But the volatility of the last few years in sheet is something new.

It’s almost like trying to build a stable, profitable business around Bitcoin – the posterchild for volatility. I don’t know whether anyone has charted Bitcoin volatility compared to HRC volatility, but I suspect U.S. sheet prices and crypto might have more in common than we think.

Related News
Read More >>
Overview of China's primary aluminium production in December 2024 and forecast for January 2025 Overview of China's primary aluminium production in December 2024 and forecast for January 2025
Jan .14.2025
Overview of China's primary aluminium production in December 2024 and forecast for January 2025
Hydro eyes 100% ownership in battery-recycling JV Hydrovolt Hydro eyes 100% ownership in battery-recycling JV Hydrovolt
Jan .14.2025
Hydro eyes 100% ownership in battery-recycling JV Hydrovolt
Colombia’s green aluminium project to lead charge in sustainable industrialisation Colombia’s green aluminium project to lead charge in sustainable industrialisation
Jan .14.2025
Colombia’s green aluminium project to lead charge in sustainable industrialisation
Alba and Ma’aden call off strategic merger talks Alba and Ma’aden call off strategic merger talks
Jan .14.2025
Alba and Ma’aden call off strategic merger talks