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    Prices

    November 8, 2016

    SMU Price Ranges & Indices: Mills Have Momentum, Prices Moving Higher

    Written by John Packard

    Steel buyers and steel mill sellers are beginning to come to the same conclusion, the steel mills have the momentum and flat rolled steel prices are beginning to rise. What may be surprising steel buyers, especially those who do not read publications like Steel Market Update, is the pace and the strength of the market swing may be greater than many thought possible. There are a number of factors affecting the psychology of this market: ferrous scrap prices are moving higher than expected and many believe scrap will continue to move higher for a number of months to come, helping to keep pressure on buyers as steel prices move higher in reaction to the higher scrap numbers. We are also seeing tremendous movement in coking coal prices which we saw this morning as being $307. ArcelorMittal made mention to how coal prices were affecting their business and you can read their comments in the earnings article in tonight’s newsletter.

    We are also seeing lead times beginning to move out with some surprises – NLMK Portage hot rolled is out into early January, there are questions as to exactly where SDI lead times are as they are reporting strong bookings. We will have information on lead times in the Thursday edition of SMU as we are conducting one of our flat rolled steel market trends surveys right now.

    John Packard

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