What Is Spot Pricing?

Spot Pricing

Spot pricing refers to the current market price for steel products that are available for immediate delivery or purchase. Unlike long-term contracts or index pricing, spot prices fluctuate based on real-time supply and demand conditions, including factors like inventory levels, market trends, and external economic influences. Spot pricing provides buyers and sellers with a transparent, up-to-the-minute understanding of the market value of steel, which can change frequently. At a steel service center, spot pricing is often used for one-time purchases or smaller orders where immediate availability and market-driven pricing are key factors.