SMU Data and Models
September 15, 2013
Supply Questions Continue to Keep SMU Price Momentum at Neutral
Written by John Packard
Steel Market Update (SMU) has received many emails from our readers as well as interested parties regarding our SMU Price Momentum Indicator which we have had at Neutral since Friday, August 23, 2013. Since that time we have seen hot rolled pricing remain in the $630-$660 per ton level (see Comparison Price Indices article below) with the SMU average down $5 per ton from the peak of $650 per ton.
The reason why flat rolled steel prices have not dropped has been the constriction of supply. Even with the restart of the AK Steel Middletown blast furnace and slab supplies in the process of being rebuilt at ThyssenKrupp Steel USA plant in Calvert, Alabama, we are not seeing excess supply pouring back into the market.
