Steel Products Prices North America
Manufacturers Report Distributor Spot Prices as Mixed Bag
Written by John Packard
June 9, 2015
Twice per month Steel Market Update asks both manufacturing companies and service centers/wholesalers to weigh in on the subject of service center spot price offers. In the survey concluded on Thursday of this past week, with most responses having been locked in prior to the dumping suit announcement, we found manufacturers reporting mixed results. Thirty-eight percent of the manufacturing community reported service center spot prices as declining. Only 14 percent of the manufacturers reported prices as rising.
This is an improvement from what the manufacturing companies were reporting all through the first 4.5 months of this calendar year. During that time frame, the manufacturers were reporting lower spot prices with percentages running from 70 percent to 91 percent.
Service Centers were a little more optimistic in their evaluation of spot pricing as 20 percent reported spot prices as rising and only 11 percent had prices falling. The vast majority of distributors reported spot prices as remaining the same.
The distributors reporting spot prices as rising did not exist going all the way back to mid fourth quarter 2014.
It is important to have the service centers supporting the overall market by raising spot prices after the domestic steel mills announce price increases. The 20 percent level is still a bit “tepid” and may reflect continued short lead times on hot rolled, cold rolled and coated products, as well as heavier than needed inventories at the distributors.
In the graphic below we have placed the price increase announcements in order to better reference the importance of service center spot price support to steel mill announcements. The $20 per ton announcement made in 4th Quarter 2014 went nowhere and prices continued to slide from that point until the most recent announcement made at the beginning of May. If the red bars fail to dissipate when announcements are made, then the price increases will not succeed.
John Packard
Read more from John PackardLatest in Steel Products Prices North America
Cliffs raises prices, seeks $950/ton for July spot HR
Cleveland-Cliffs plans to increase prices for hot-rolled (HR) coil to $950 per short ton (st) with the opening of its July spot order book. The Cleveland-based steelmaker said the price hike was effective immediately in a letter to customers dated Monday.
HRC vs. prime scrap spread widens in June
The price spread between HRC and prime scrap widened in June.
SMU price ranges: Steel prices rise in response to tariffs
Steel prices climbed for a second straight week across all five sheet and plate products tracked by SMU.
Nucor lifts list price for spot HRC by $20/ton
The $20/short ton increase applies to all of the steelmaker’s sheet mills, including West Coast joint-venture subsidiary CSI.
Nucor pauses month-long slide in weekly HR price
Nucor halted a four-week decline in its spot price for hot-rolled coil this week, maintaining its weekly consumer spot price (CSP) at $870/st.