HR up $8/ton ($0.40/cwt) this week, landing at $703 ($35.15)…..
1Q 2012 was last time HR CRU was this high…prices started to build from around $30.00 in November of 2011 and peaked at $37.00 in February back then. And by July it was back around $30.00.
Coincidentally this current run up started in early November and prices were right around $30.00……sound familiar?
With SCRAP currently at $400/GT ($17.85), HR CRU at $35.15 is $17.30 over scrap….typical spread normally around $14.00/cwt from scrap to HR price, so things a little out of whack right now, though of course many things besides scrap dictate HR pricing….
But back in November of 2011, scrap was at $510, as opposed to $400 now….And when HR peaked at $37.00 in February of 2012, scrap was at $530….obviously pressure on imports and pending 232 findings having a lot to do with this current run up….but perhaps its inflated and won’t have much staying power??? As always, stay tuned…..
CR up $8 this week and GV down $1