Manufacturers Report Stable to Declining Prices out of Service Centers

Manufacturing companies reported service center spot prices as either stable (82 percent) or decreasing (18 percent) during our most recent SMU steel market survey. When compared to the results taken at the beginning of February we found no longer were any of the manufacturing companies reporting any attempts by the distributors to raise prices. In early February 19 percent of the manufacturers were reporting rising prices by their service center suppliers. The percentage of service centers reported to be lowering spot prices rose from 4 percent during the first week of February to 18 percent this past week.

As we reviewed the historical data we found the manufacturing companies reported 50 percent of the service centers were raising prices in November but the percentage has been dropping. The number of service centers lowering prices had been fairly consistent averaging less than 8 over the past three months.