Steel Products
SMU Survey: More Service Center's Supporting Spot Price Increases
Written by John Packard
August 9, 2013
Service centers continue to raise spot flat rolled prices to their end customers, according to our most recent steel market survey. Seventy seven (77) percent of the service centers responding to our early August questionnaire advised their company as raising prices compared to two weeks ago. The remaining distributors reported keeping prices the same.
The 77 percent support level ties the highest level reported for this year and is the highest level of price support seen over the past 5 quarters. Support for higher spot prices began in earnest during the middle of June following price increase announcements made by the domestic mills in late May and again in the middle of June.
Manufacturing companies confirmed the higher percentage of service centers raising prices as 52 percent reported higher spot price offers from their distributors. This is an increase of 10 percent from what was reported in the middle of July. It is also the highest percentage reported for both this calendar year and over the past 5 quarters.
Service centers left a few comments on the subject during the survey process:
“Raising prices when and where possible based on based on customer’s requirements of quantity, duration and delivery. Passing on an announced price increase is very difficult to the end user especially when most realize these increases are not demand driven but more desperation driven (quarterly losses) Nevertheless, most savvy businessmen realize you can’t stay in business forever if you keep bleeding cash.”
“We having more success each week, but there are still service centers out there who need to wake up and understand the window of opportunity is only open for so long.”
“The prices are erratic and we just try to get last look and the order . Relationships are important !”
“No support for plate increases.”
“This week we are finally able to raise prices.”

John Packard
Read more from John PackardLatest in Steel Products

Domestic mill shipments rise in June: AISI
US steel shipments increased month over month and year over year in June, according to the latest figures from the American Iron and Steel Institute (AISI).

Active rig counts slipped in US, Canada
Drilling activity slowed in the US and Canada last week, according to the latest oil and gas rig count data released by Baker Hughes.

OCTG producers in Canada take aim at Mexico, US, others
Evraz NA and Welded Tube of Canada have lodged an unfair trade complaint against imports of OCTG, including those from USMCA trading partners Mexico and the US.

Final Thoughts
The difference: The spat with Turkey was a big deal for steel. This time, the 50% reciprocal tariff for Brazil – if it goes into effect as threatened on Aug.1 – hits everything from coffee and to pig iron. It seems almost custom-built to inflict as much pain as possible on Brazil.

CRU: US rebar and wire rod prices rise alongside S232 increase
CRU Senior Steel Analyst Alexandra Anderson discusses current market and pricing dynamics for long steel products in the US.