SMU Data and Models
Service Center Spot Prices in Transition
Written by John Packard
April 25, 2017
Both manufacturing companies and service centers are reporting distributor spot prices as being in a state of transition. The percentage of manufacturing companies reporting service centers as raising spot flat rolled steel prices has dropped from 50 percent at the beginning of April to 19 percent. At the same time 19 percent of the manufacturing respondents are now reporting distributors as offer spot prices lower than one month ago when no one (0%) reported spot prices as dropping.
Service centers reported similar results as the manufacturers with 18 percent reporting their company as raising spot prices. The vast majority of our service center respondents (71%) reported spot flat rolled prices coming out of their company as remaining the same. Only 11 percent reported their company as dropping prices.
As you can see by the two graphics the market has been a little topsy-turvy over the past couple of months. Due to this instability Steel Market Update has our Price Momentum Indicator at Neutral. A Neutral indicator means prices are in transition and could move in either direction as we wait for a strong push on supply or demand that will result in prices moving in concert in one direction.
John Packard
Read more from John PackardLatest in SMU Data and Models
SMU Scrap Survey: Current Sentiment rises as Future Sentiment falls
SMU’s current Scrap sentiment index increased this month while future sentiment declined, according to our latest ferrous scrap survey data.
SMU scrap market survey results now available
SMU’s September ferrous scrap market survey results are now available on our website to all premium members.
SMU Survey: Sentiment inches up from low levels
SMU’s Steel Buyers’ Sentiment Indices ticked higher this week, according to the latest data from our flat-rolled steel survey.
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.
SMU Survey: Sheet and plate lead times hold steady
Sheet and plate lead times held steady yet again this week, according to steel buyers responding to our latest market survey, a trend in place since May.