SMU Data and Models
SMU Survey: Majority Report Less Than 50% of Last Increase has Been Collected
Written by John Packard
March 25, 2013
According to the results of our most recent steel market survey, 62 percent reported “some” of the increase (less than 50% of the increase amount) has been collected. Another 5 percent reported “most” of the increase as being collect (more than 50% of the announced amount) while 33 percent reported “none” of the announced increase as being collected at this point in time.
The price increase in question began on February 26th when U.S. Steel announced a $50 per ton increase. At that point in time the SMU hot rolled index average was $600 per ton. This coming week will be four weeks since the initial announcement. SMU uses a 4-week benchmark to determine if an increase is successful (more than 50% collected), semi-successful or a failure. As of this past week our HR index was $10 per ton higher than where we were three weeks prior.
The first price increase announcement made this calendar year was by AK Steel on Monday, January 21st when they announced $40 per ton. On Tuesday, January 22nd SMU published our hot rolled index as being $610 per ton. Our index did reach $620 per ton before dropping back and 4 weeks after the announcement our index was once again at $610 per ton. For that reason we consider the announcement to be a failure. However, if the intention of the announcement was to put a floor on pricing then it could be consider a success as it did temporarily stop prices from eroding further.
On Tuesday of this week we will determine if the second announcement is to be considered a success based on our criteria.
John Packard
Read more from John PackardLatest in SMU Data and Models
SMU Survey: Steel Buyers’ Sentiment Indices stable to start 2025
Both SMU Steel Buyers' Sentiment Indices remain in positive territory, indicating that steel buyers are optimistic about the success of their businesses.
SMU Survey: Mill lead times short and steady to start 2025
Buyers participating in our first market survey of 2025 reported a slight decline in mill lead times compared to our last survey in mid-December. After rising moderately in early December, lead times edged lower through this week and are now only slightly above the lows seen back in July and November. Overall, production times have remained historically short since last summer, with minimal movement since then.
SMU’s December at a glance
SMU’s Monthly Review provides a summary of important steel market metrics for the previous month. Our latest report includes data updated through December 31st.
SMU Survey: Steel Buyers’ Sentiment Indices contrast at year end
Both of our Sentiment Indices remain in positive territory and indicate that steel buyers are optimistic about the success of their businesses.
SMU Survey: Mill lead times contract slightly, remain short
Steel mill production times have seen very little change since September, according to buyers participating in our latest market survey.