Steel Reality Fair Value HRC Model Unchanged this Week
By Steel Market Update - Fri 08 Mar 2013 16:36:00 CT
Related Keywords: Metals

The SMU/Steel Reality Fair Value hot rolled coil model has Fair Value remaining the same as last week due to a lack of price movement in either scrap or SMU HRC pricing.  The spread between our Fair Value model and hot rolled pricing is +$6 per ton.  Hot rolled prices are $6 per ton higher than our Fair Value model.

The Fair Value HRC model was part of the acquisition of Steel Reality made a couple of months ago.  The model demonstrates the relationship between scrap inputs and hot rolled coil index pricing.  Our proprietary calculation estimates Fair Value for HRC and the difference is how far above or below Fair Value is the current spot price.


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