Final Thoughts
October 31, 2013
Final Thoughts
Written by John Packard
It seems to be a foregone conclusion that there will be a flat rolled price increase announcement within the next few working days. Spot prices have remained firm with benchmark hot rolled averaging $665 per ton ($650-$680 range) based on our SMU index. Scrap is forecast to be up by $20 to $40 per gross ton and maybe $50 per gross ton by the end of the year. If that is correct the mini-mills will have pressure on their margins. Our expectation would be for Nucor or Severstal to lead off the next round of increases. Our expectation is $30-$50 per ton…
My opinion is prices will rise from here through at least the rest of the year. As of 6 PM this evening I am adjusting out SMU Price Momentum Indicator to Higher. I will have more details on the reasons why in Sunday night’s edition of our Executive Newsletter and in our Premium Special issue to be published for our Premium Level members tomorrow.
