Steel Products
SMU Survey: More Service Center's Supporting Spot Price Increases
Written by John Packard
August 9, 2013
Service centers continue to raise spot flat rolled prices to their end customers, according to our most recent steel market survey. Seventy seven (77) percent of the service centers responding to our early August questionnaire advised their company as raising prices compared to two weeks ago. The remaining distributors reported keeping prices the same.
The 77 percent support level ties the highest level reported for this year and is the highest level of price support seen over the past 5 quarters. Support for higher spot prices began in earnest during the middle of June following price increase announcements made by the domestic mills in late May and again in the middle of June.
Manufacturing companies confirmed the higher percentage of service centers raising prices as 52 percent reported higher spot price offers from their distributors. This is an increase of 10 percent from what was reported in the middle of July. It is also the highest percentage reported for both this calendar year and over the past 5 quarters.
Service centers left a few comments on the subject during the survey process:
“Raising prices when and where possible based on based on customer’s requirements of quantity, duration and delivery. Passing on an announced price increase is very difficult to the end user especially when most realize these increases are not demand driven but more desperation driven (quarterly losses) Nevertheless, most savvy businessmen realize you can’t stay in business forever if you keep bleeding cash.”
“We having more success each week, but there are still service centers out there who need to wake up and understand the window of opportunity is only open for so long.”
“The prices are erratic and we just try to get last look and the order . Relationships are important !”
“No support for plate increases.”
“This week we are finally able to raise prices.”
John Packard
Read more from John PackardLatest in Steel Products
Domestic CRC prices edge up, import tags mixed
The price spread between US-produced cold-rolled (CR) coil and offshore products on a landed basis widened slightly in the week ended Nov. 22.
Active rig counts stable this week
US rig activity has remained in multi-year low territory since June. Drilling in Canada has edged lower across the last few weeks but remains historically strong.
Domestic HR, offshore prices decline
US hot-rolled (HR) coil prices slipped this week, while tags in offshore markets were also largely down. Thus, the price premium between stateside hot band and imports on a landed basis was relatively unchanged.
Kloeckner, SDI collaborate on aluminum plant in Mississippi
The investment is aimed at growing Kloeckner’s automotive and industrial segment in the US and Mexico.
HVAC shipments slip in September but are still trending higher
Following a strong August, total heating and cooling equipment shipments eased in September to a five-month low, according to the latest data from the Air-Conditioning, Heating, and Refrigeration Institute (AHRI).