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    May 20, 2014

    SMU Price Ranges & Indices: Steel Mills Holding On...

    Written by Brett Linton

    Even though there might be an air of expectation that flat rolled steel prices are going to drop, Steel Market Update continues to see a stingy domestic steel industry. Stingy in that they are not quick to give back the gains made over the past eight weeks. SMU noticed that Platts actually moved their hot rolled prices slightly lower this week. We also picked up a slight weakening on hot rolled but not enough to call out the white flags. Just enough to keep our SMU Price Momentum Indicator at Neutral.

    Flat rolled steel buyers were telling us that the mills were “showing a little more flexibility” in their negotiations. However, when pressed, most were not able to confirm receiving lower prices this week than they had one week ago. The mood change, as one executive put it to SMU this afternoon, was “Two weeks ago it was take it or leave it” and now there is a realization that lead times are not quite as far out and there is a flood of foreign at the docks…”

    Brett Linton

    Brett Linton is a digital operations analyst for Steel Market Update, where he began his career. Linton has been in the steel industry since 2010. He has held roles as a category manager and strategic insights director at Reibus before returning to SMU in 2024. He is a graduate of The University of North Georgia with a degree in Finance and Accounting. Brett can be reached at brett@steelmarketupdate.com or 724-314-0179.

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