Service Centers
January 15, 2015
Secondary Steel Distributors Worried
Written by John Packard
Margins are being compressed at the secondary steel services centers according to SMU secondary market sources. However, unlike prime flat rolled steel where we find prices have been in steady decline for a few months, secondary or non-prime flat rolled steel pricing did not begin to erode until right after the beginning of the New Year.
A Chicago based secondary distributor told SMU earlier today, “Up until the first of the year the mills have been trying to hold the line on pricing. Over the last couple of weeks prices on secondary steel offers out of the steel mills have slipped $20 to $30 per ton.”
