SMU Data and Models
SMU Market Trends: It’s No Secret Prices are Rising
Written by Tim Triplett
January 21, 2018
Most steel buyers agree that prices are on the increase, it’s just a question of how high and how fast. About 92 percent of the respondents to Steel Market Update’s latest market trends questionnaire concur that steel prices are heading higher, while the remainder say they see no clear price direction.
Following are some of their comments:
- “I believe we are headed higher, but the market is not as strong as recent price announcements would suggest.” Service Center/Wholesaler
- “All ‘drivers’ are pointed upward, but if scrap retreats in February or March, the upward movement of prices will be tested.” Steel Mill
- “Clearly input costs are rising and restrictions on trade will force prices to continue to rise.” Trading Company
- “We’re waiting on Section 232.” Manufacturer/OEM
- “Mills don’t know when to stop. The continued delay on Section 232 helps the mills. Now Trump has another three months to decide, so imports will be limited until he makes the final decision.” Manufacturer/OEM
Rising prices don’t necessarily ease the competitive pressures. Nine out of 10 service centers say they are passing the mill price hikes along to their customers, while 10 percent say they are keeping prices the same. As one service center executive observed, “There’s lots of margin pressure as some service centers are not yet raising prices.
Tim Triplett
Read more from Tim TriplettLatest in SMU Data and Models
SMU Survey: Steel Buyer Sentiment Indices soften
SMU’s Steel Buyers’ Sentiment Indices eased this week, both approaching multi-year lows.
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: Mill lead times remain short
Steel mill lead times on sheet products contracted across the board this week compared to early July, while plate production times moderately extended, according to steel buyers responding to this week’s market survey.
SMU Survey: Most buyers say mills are open to negotiating prices
More than nine out of every ten steel buyers polled by SMU this week reported that mills are negotiable on new order prices. Negotiation rates have increased in each of our last three surveys following the early-June lull, reaching a record high this week.
Service centers: Mill orders recover in June
SMU’s Mill Order Index (MOI) rebounded in June after declining for three straight months. The gain complemented a modest boost in service center shipments for the month, according to our latest service center inventories data.