SMU Price Momentum Indicator: Still Pointing Toward Lower Pricing

The good news for the consumer is gasoline prices are closing in on $2.00 per gallon in many areas of the country. The bad news for the steel industry is the drop in oil prices means a slowdown in new drilling, one of the major users of hot rolled coil.

The good news for buyers of flat rolled has been the price of foreign steel. The bad news for the U.S. steel mills is that same foreign steel which has been taking market share from the domestic mills all year. The disparity between foreign and domestic steel prices will continue into 1st Quarter 2015.