Partial Price Increases Taking Hold

As you can see in the graphic below the vast majority of those responding to last week’s questionnaire (77 percent) reported the domestic mills as being able to collect some (partial) of the announced increase.  Another 9 percent reported the mills as able to collect all of the increase and the balance (14 percent) told SMU that none of the increase had yet been passed through to their company.

We pointed out last week that those responding to our questionnaire were reporting that they expect the domestic steel mills to announce a new round of price increases early this year. Exactly what that means remains to be seen.

What Our Respondents Had to Say

“Hope that they collect all, but do not think any rise will be swift. All factors domestic mills use to base an increase are in play i.e., trade cases, capacity, raw material cost; but are not focused on a sluggish economy, even in light of an election year. Banks are still playing the ‘big short.'” Trading Company

“Not hearing of any push back from anyone at this point. Scrap going up in January will help support it.” Service Center

“Some of the increase has been recovered on plate products; whereas all of HRC increases have been accepted.” Steel Mill

“We have a lot of inventory and haven’t “tested” the price increases.” Manufacturing Company