Steel Products Prices North America
March 30, 2014
SMU Comparison Price Indices: We Agree & We Are Not the Same
Written by John Packard
When markets start to move each steel index will pick up the information in different ways. It is important to understand each index methodology, how often the markets are canvassed and how deep the reporting resources are. CRU indices are based on actual verifiable transactions from both steel mills and buyers. Platts takes into consideration mill price offers as well as actual transaction data. Steel Market Update collects the vast majority of our data points from manufacturing companies and service centers and not from steel mills. Each collection method has its pluses and minuses. This is the reason why it is important not to rely strictly on one source of information when reviewing short term flat rolled steel pricing market trends (financial instruments and contract adjustments are different stories).
Two weeks ago, ArcelorMittal USA started the push for higher prices as they announced new minimum base prices on hot rolled, cold rolled and coated flat rolled steels. Essentially all of the mills followed AM lead with announcements of their own. However, what will vary from mill to mill is how quickly did each mill actually change pricing to their customers and, how many orders were taken at pre-announcement prices which got caught up in the reporting process.
