SMU Data and Models
SMU Market Trends: How Strong is Demand?
Written by Tim Triplett
January 21, 2018
Is demand strong enough to support the latest wave of mill price increases?
The majority (53 percent) of respondents to Steel Market Update’s latest market trends questionnaire say demand is unchanged, while 6 percent describe it as declining. Only 41 percent consider steel demand to be improving as the new year begins.
Following are a few respondents’ comments:
- “It’s difficult to know true market demand in January.” Trading Company
- “Demand is slightly improving. Weather has been a factor this winter.” Steel Mill
- “Demand has been steady for some time now and remains strong in general.” Trading Company
- “Demand is strong. The week of Jan. 8 was the largest week for sales in the history of the company.” Manufacturer/OEM
Of the service center executives responding to SMU’s questionnaire, only one-third report that their manufacturer customers are increasing orders. Sixty percent say manufacturers are maintaining order flows, while 7 percent report that steel-consuming manufacturers are actually reducing orders.
Certainly, demand varies widely by region, by end-use market and by steel product type, but the degree to which the mills will succeed in collecting their latest price hikes remains an open question.
Tim Triplett
Read more from Tim TriplettLatest in SMU Data and Models
SMU Scrap Survey: Sentiment Indices rise
Both current and future scrap sentiment jumped this month, though survey participants reported responses before key trade news was announced.
SMU Survey: Sentiment splits, buyers have better view of future than the present
SMU’s Steel Buyers’ Sentiment Indices moved in opposite directions this week. After rebounding from a near five-year low in late June, Current Sentiment slipped again. At the same time, Future Sentiment climbed to a four-month high. Both indices continue to show optimism among buyers about their company’s chances for success, but suggest there is less confidence in that optimism than earlier in the year.
SMU scrap market survey results now available
SMU’s ferrous scrap 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 “ferrous scrap survey” results. Past scrap survey results are also available under that selection. If you need help accessing the survey results […]
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 […]
SMU Survey: Sheet lead times stabilize, plate contracts
Mill lead times for sheet products were steady to slightly longer this week compared to our late June market check, while plate lead times contracted, according to steel buyers responding to this week’s market survey.