Steel Products Prices North America
March 11, 2014
Steel Prices: The Million Dollar Question
Written by John Packard
Prices continue to erode on all flat rolled steel and buyers expect the trend to continue as iron ore, met coal and scrap prices retreat in their markets. One domestic flat rolled steel buyer pointed out, “The cost of production is coming down.” The expectation is that lower scrap prices will translate into lower hot rolled prices and other flat rolled steel prices in the coming weeks.
A service center executive told SMU earlier today, “The softening of input costs this week (iron ore and scrap) will further erode buyer confidences, however, spot market activity is increasing daily as steel buyers have been on the sideline since the beginning of the year. The million dollar question remains: Do you commit to buying from the mills today if you believe the market will decline further by the time your order arrives?”
