Steel Products Prices North America
SMU Survey: How Much of the Increase Has Been Collected?
Written by John Packard
July 28, 2019
Last week, Steel Market Update conducted our mid-July flat rolled and plate steels market trends analysis. We invited 480 individuals representing 450+ companies to participate in our questionnaire. We intentionally concentrate on inviting manufacturing (40 percent last week) and service centers (45 percent last week) as well as steel mills, trading companies and toll processors (each were 5 percent last week). Most of the respondents are associated with the purchasing side of their business.
We asked the following question: “The flat rolled mills have announced $120 per ton ($6.00/cwt) of price increases, how much of the increase has stuck so far?”
As you can see by the graphic below, the responses we received were concentrated from “none” with 20 percent, to $40 per ton which garnered 30 percent of the responses. There were no responses above $80 per ton (7 percent), but to be open our survey began prior to the ArcelorMittal and Nucor announcement later in the day.
What Our Respondents Had to Say:
“I am seeing about half of the increases sticking on HRC and CRC. Coated seems to be more, but I’m not 100 percent clear on that level.”
“Too much available on the excess and secondary market. Foreign will start pouring in at these price points.”
“Expect some increase for September, $20-$40 ton.”
“Over $40.”
John Packard
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