SMU Data and Models
SMU Price Momentum Indicator Moved to Higher from Neutral
Written by John Packard
July 2, 2017
With the threat of a Section 232 decision in favor of the domestic steel mills looming over the market, Steel Market Update (SMU) has decided to take our Price Momentum Indicator from Neutral to Higher. It is our opinion conditions are in place to push flat rolled steel prices even higher from their current levels. SMU expects steel prices to rise over the next 30 to 60 days.
The steel mills continue to be able to manipulate supply both out of the steel mills (closure of furnaces at Ashland and Granite City and the shutdown of the furnace at Fairfield) as well as from foreign steel sources through AD/CVD trades suits and now Section 232. A favorable ruling on Section 232 could create a shortage of foreign steel, some of which is needed to service business in the U.S. where the products are either in short supply or priced out of the world market.
Here is what has happened to our Price Momentum Indicator over the past few years.
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 […]