SMU Data and Models
Buyers Split on Success of Domestic Mill Price Increases
Written by John Packard
May 10, 2015
Buyers and sellers of flat rolled steel are split over whether or not the price increase announcements of two weeks ago will actually be collected. This past week we invited approximately 600 companies to participate in our flat rolled steel market survey. Of the more than 100 companies who responded fifty-three percent told SMU that the steel price increases would indeed stick. The balance (47 percent) where more skeptical and do not believe the price increases will remain in the days and weeks ahead.
What Our Respondents Had to Say About Whether the Price Increases Would Stick?
“After they announce a second increase.” Trading Company
“That would be HELL NO.” Plate Supplier
“There really is no basis for the increase except yet another attempt to send a signal that the price is low enough now and they need the slide to stop.” Manufacturing Company
“NOT UNTIL EVERYONE GETS ON BOARD AND THE BACK ROOM DEALS ARE STOPPED.” Service Center
“An increase this early has only succeeded in pulling orders forward at the old prices but demand will now be softer in the summer months and prices will resume its slide. It may also encourage more imports to return.” Manufacturing Company
“Stop the decline at least.” Service Center
“I don’t think the increase was put out for an increase rather to stop the decreases!” Service Center
“If the mills hang together and not one weak link arises in their ranks.” Trading Company
“The increases are arbitrary. $20 – $30 from what base. If it helps the market to find a bottom – it’s a big positive.” Steel Mill
“I would like to qualify my answer by adding, will stick in part, and briefly.” Service Center
John Packard
Read more from John PackardLatest in SMU Data and Models
Service centers: Mill orders down marginally in May
SMU’s Mill Order Index (MOI) declined for a third straight month in May, but only marginally.
Most steelmaking raw material prices decline through June
According to our latest analysis, prices for four of the seven steelmaking raw materials we track declined from May to June. Collectively, these materials declined 3% month over month (m/m) and are down 9% compared to three months ago.
May service center shipments and inventories report
Flat rolled = 57.1 shipping days of supply Plate = 55.7 shipping days of supply Flat rolled US service centers reined in flat roll supply in May, coinciding with declining shipments. At the end of May, service centers carried 57.1 shipping days of supply, according to adjusted SMU data. That’s down slightly from 57.6 shipping […]
Survey says: Market hit with another blast of tariff whiplash
If you’re feeling a sudden jerk and a case of tariff whiplash coming on, you’re not alone.
SMU flat-rolled 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 […]