SMU Data and Models
May 12, 2015
SMU Price Momentum Indicator Adjusted to Higher
Written by John Packard
This week Steel Market Update adjusted our Price Momentum Indicator to Higher from Neutral. Based on our checks of the steel buying community, prices are beginning to firm and the $20 per ton price increase announced by a number of the steel mills appears to be sticking. SMU is of the opinion as long as lead times continue to move out and the steel mills are able to control themselves, then flat rolled steel prices over the next 30 to 60 days should continue to move higher.
We have decided to make this move due to a number of factors which we see as working in the steel mills’ favor.
