SMU Data and Models
October 22, 2013
SMU Price Momentum Indicator Continues at Neutral
Written by John Packard
On August 23rd Steel Market Update adjusted our Price Momentum Indicator from Higher to Neutral. Since that time benchmark hot rolled prices have been within $5 per ton (+/-) of $640 per ton until this past week when prices rose by $15 per ton. Essentially, we began capturing transactions and offers related to the price increase announcements made by the domestic mills during the week beginning September 30th. At that time spot hot rolled base prices were increased to $33.50/cwt-$34.00/cwt ($670-$680 per ton).
We have a number of items which could impact pricing and move the numbers higher over the next few weeks. They include forecasted higher scrap prices of approximately $20 per gross ton and tight inventory levels at service centers.
