SMU Data and Models
SMU Survey: More Flat Rolled Price Pressure to Come
Written by John Packard
May 22, 2016
Twice per month Steel Market Update (SMU) conducts our flat rolled steel market trends analysis. During the process we find out how buyers and sellers are feeling about their company’s ability to be successful in the current steel environment (SMU Steel Buyers Sentiment Index) and we probe many other areas of interest to those manufacturing, distributing or servicing the industry.
During last week’s analysis we asked our respondents as to what price level did they think benchmark hot rolled coil would reach on new orders placed for future delivery on September 1, 2016?
With our SMU HRC index now at $620 per ton, we found 62 percent of those responding believing prices would go higher from here. The largest grouping ranged from $640 to $700 per ton with 56 percent believing these levels will be reached by September 1st.
Comments made during the survey process:
“By then with Chinese and potentially global steel pricing being weak, the turn should already be started. Companies will find ways to import steel from new avenues.”
“I would expect the rapid rise start to slowdown over the coming months unless something happens to material availability being further restricted by the mills.”
“I would expect the rapid rise start to slowdown over the coming months unless something happens to material availability being further restricted by the mills.”
“I believe the Domestic Steel Mills are raising prices too much too soon. We all wanted higher prices but this is sticker shock. It is like they are making all of us pay for their 2015 losses from imports. Not Fair. Too Much, Too Soon.”
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 […]