Service Centers

Service Center Spot Pricing Faltering
Written by John Packard
February 9, 2014
Manufacturing companies and service centers are beginning to agree on one topic: service center spot prices are faltering and spot price offers are beginning to drop. The percentage of manufacturing companies reporting lower spot prices out of the service centers rose from 4 percent in early January to 20 percent. At the same point in time, the percentage of manufacturing companies reporting distributor’s pricing as rising dropped from 55 percent down to 20 percent.
Service centers, none of which were reporting their company as lowering spot prices to their end users at the beginning of January, have moved their numbers in line with the manufacturing companies. Twenty one percent of the distributors now report spot prices as dropping while the same percentage report prices as rising. One month ago, 61 percent of the service centers reported prices as rising.
Service center spot prices is a leading indicator of rising or falling domestic mill pricing. We do not see domestic mills as being able to rise without service centers moving their spot prices higher at the same time. When service centers begin dropping spot prices we tend to see domestic mill prices reacting in a similar fashion. Mill prices have dropped approximately $15 per ton over the past 30 days.

John Packard
Read more from John PackardLatest in Service Centers

Reliance reports record tons sold in Q1
A factor in the sales was customers buying ahead of tariff-related price increases.

Galv buyers notched strong Q1, but see uncertainty on the horizon
Participants on the HARDI Sheet Metal/Air Handling Council call said underlying demand is solid but there are slower pockets in some markets.

GM names Worthington a 2024 Supplier of the Year
This is the Ohio-based steelmaker’s fourth time winning the award.

Olympic taps Hegler for GM role at Action Stainless
Olympic Steel has named Alex Hegler as general manager for its Action Stainless facility in Rock Hill, S.C.

Olympic opens new Houston facility for Action Stainless unit
Olympic Steel has opened a new facility in Houston to support its Action Stainless business.