Steel Products
March 11, 2013
Price Increase Announcements Create Short-Term Volatility
Written by John Packard
Batting average is around .500 – Half Stick, Half Don’t
Remember the good old days when the domestic steel industry would announce price increases based on the flow of business – when order flows increased to a point where mill books were strained and lead times became extended and industry prices moved higher? The “new normal” is let’s throw it against the wall and see what sticks… problem is half of the “stuff” isn’t sticking and the more times you scream “fire” without a fire being there, the less serious the announcements become.
