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    October 25, 2016

    Steel Service Centers at Point of Capitulation: Supportive of Price Increase

    Written by John Packard

    Steel Market Update has been reporting flat rolled steel service centers had reached the point of “capitulation” earlier this month. History has shown that when the service centers reach the point of capitulation they tend to support flat rolled steel price increases being made by the domestic steel industry. Essentially, the steel distributors are attempting to remove the pain of inventories being devalued by reversing the pricing trend.

    Capitulation is the point at which 75 percent of the flat rolled steel service centers report their company as lowering spot steel prices to their customers. The data is part of the Steel Market Update flat rolled steel market trends analysis which we conduct twice per month.

    John Packard

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