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: Mill lead times remain stable and short
Steel buyers participating in our market survey this week reported stable mill lead times for both sheet and plate steel products.
SMU Survey: Most buyers report mills still willing to talk price
Most steel buyers SMU polled this week reported that mills remain willing to negotiate new order pricing.
October service center shipments and inventories report
Flat rolled = 63.4 shipping days of supply Plate = 52.4 shipping days of supply Flat rolled shipments and inventories Flat-rolled steel supply at US service centers remains seasonally high. October inventories increased after edging lower in September – a dynamic driven largely by disappointing demand. October’s report reflects lower demand and stable lead times […]
Apparent steel supply slips to 7-month low in September
The total amount of finished steel to enter the US market in September fell to its lowest level in seven months, according to our analysis of recent Department of Commerce and the American Iron and Steel Institute (AISI) data
SMU market survey results now available
SMU’s latest steel buyers market survey results are now available on our website to all premium members. After logging in at steelmarketupdate.com, visit the pricing and analysis tab and look under the “survey results” section for “latest survey results.” Past survey results are also available under that selection. If you need help accessing the survey results, or if […]