Prices
May 13, 2014
SMU Price Ranges & Indices: Sideways But Firm
Written by Brett Linton
U.S. and Canadian steel mills continue to keep a firm grip on pricing as supply (production) related problems keep lead times extended on most products. We are seeing the impact of foreign galvanized and Galvalume imports influencing at least one coated steel mill in the South. Domestic buyers appear to be accepting the higher prices but, they do not appear willing to build inventory at these price levels. They are buying only what they have for immediate needs or, they are looking at foreign as an alternative. Our SMU Price Momentum Indicator continues to point toward higher steel prices over the next 30 days. Although, we do not expect any large swings in pricing unless there is either a surge of steel production (due to USS Great Lakes and Gary coming back to full production) or if production issues at ArcelorMittal are more severe than what we believe to be the case (Cleveland C-5 blast furnace and Indiana Harbor furnace going down in June). Our opinion is prices should remain firm through the end of May. Scrap prices, which just dropped on shredded scrap but remained about the same on prime grades, are expected to retreat in June which could put pressure on steel prices.
Here is how we are seeing steel mill spot prices this week:
