SMU Price Ranges & Indices: Flat to Lower

The domestic steel mills continue to struggle to keep the flat rolled steel averages (indices) above benchmark levels. Hot rolled coil, which according to our index rose during the previous two weeks to $615 per ton (average), is now struggling to hold its gains. Other flat rolled items are having their issues and this was highlighted by SDI in their pre-earnings announcement when they spoke to weakness in the galvanized market.

For the 15th week in a row our SMU Price Momentum Indicator is at Neutral as price momentum is muted at best. We are seeing some potential weakening in the numbers as mills are actively negotiating with those who have actual tons to place. There is talk within the industry of another price announcement but most buyers no longer consider the announcements as being serious impediments to the way they intend on purchasing steel going forward.