SMU Data and Models
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SMU SC Spot Pricing Index Showing Early Cracks in Price Foundation?
Written by John Packard
April 12, 2018
Since the beginning of the New Year, manufacturing companies and steel service centers have been reporting service center spot pricing to their end customers as rising. Just a few weeks ago, 100 percent of the manufacturers responding to our mid-March flat rolled steel market trends questionnaire reported distributor prices as rising. Last week, Steel Market Update conducted our early April analysis and we found 88 percent of the manufacturing companies still reporting distributor spot prices as rising.
Service centers, who reported rising spot prices unanimously during our mid-March analysis, saw those reporting rising prices slide slightly to 79 percent this past week. For the first time since late fourth quarter, we found 5 percent of the distributors reporting their company as lowering spot prices. The balance (16 percent) told SMU steel spot prices were the same as what was reported in mid-March.
The 21 percent drop in those reporting rising spot prices is significant and may be the harbinger of a transitioning market. SMU will be watching this carefully during our mid-April analysis time period, which will begin on Monday of next week.
In the meantime, the SMU Price Momentum Indicator continues to point toward Higher steel prices over the next 30 days.
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John Packard
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Steelmaking raw material prices ease in July
The majority of steelmaking raw material prices declined in June, following the same trend seen in May, according to SMU’s latest analysis.
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SMU price ranges: HR declines moderate. Are we near a bottom?
SMU’s sheet price ranges slid again this week. But the declines were more pronounced on tandem products whereas prices for hot-rolled coil held roughly steady.
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Some SMU Key Market Indicators improve, others remain near historic lows
SMU’s Key Market Indicators include data on the economy, raw materials, manufacturing, construction, and steel sheet and long products. They offer a snapshot of current sentiment and the near-term expected trajectory of the economy. All told, nine key indicators point lower, 16 are neutral, and 13 point higher. One thing worth noting: The nine indicators pointing lower are all lagging indicators. Many of those pointing upward are leading indicators.
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SMU survey: Steel Buyers’ Sentiment Indices rebound
SMU’s Steel Buyers’ Sentiment Indices both saw improvement this week. Current sentiment ticked higher but remains near the four-year low seen earlier this month. Future Sentiment continues to indicate that buyers are optimistic for future business conditions.
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SMU market survey results now available
The latest SMU 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.” Historical survey results are also available under that selection. If you need help accessing the survey results, or if your […]