SMU Data and Models
A Look Back at December by the Numbers
Written by John Packard
January 2, 2014
SMU Price Momentum Indicator ended the month of December where it began, indicating higher flat rolled steel prices over the next 30 days. The domestic steel mills did not disappoint as they raised base price levels to $35.00/cwt on hot rolled and $40.50/cwt on cold rolled and coated (plus extras, FOB mill) for the mills east of the Rockies.
On the West Coast, California Steel Industries (CSI) and USS-POSCO Industries (UPI) came out with price announcements as well. The UPI announcement calls for hot rolled base price levels at $35.75/cwt, cold rolled at $40.00/cwt and galvanized at $42.50/cwt for March production.
Our SMU Steel Buyers Sentiment Index moved higher with an average of +38 for December.
SMU hot rolled prices averaged $671 per ton ($669 at CRU), cold rolled $779 per ton, benchmark .060” G90 galvanized $836 per ton and benchmark .0142” AZ50, Grade 80 Galvalume at $1077 per ton.
Zinc pricing on the LME rose for the first time in quite awhile averaging $.9051 but actually ended the month at $.9482. Galvanized buyers will need to keep an eye on zinc pricing over the next few months to see if this is a new trend or just a blip on the radar screen.
SMU Apparent Deficit on service center inventories (more details available to Premium Level members) dropped from -361,000 tons to -58,000 tons.
Construction spending is growing as are imports of foreign steel and exports of domestic steel. Apparent steel supply for October (last month will full data) was 9,445,000.
John Packard
Read more from John PackardLatest in SMU Data and Models
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 […]
SMU Survey: Steel Buyers’ Sentiment Indices rebound
Following months of fluctuations, SMU’s Steel Buyers’ Sentiment Indices rebounded this week, now at multi-month highs. Both of our Indices remain in positive territory and indicate that steel buyers are optimistic about the success of their businesses.
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 […]