How Long Can This Last?

Flat rolled steel prices have been slipping on a regular basis for a number of months. This has created a market where buyers expect lower prices each time they order steel, even if there is only a week or two between orders. This tends to keep order sizes modest and develops a feeding frenzy between service centers as they opt to eliminate inventory knowing they can replace at lower prices. It also creates a competitive environment between steel mills as they push to improve their order books.

The question on both service center and end user lips is “How long can this last?” There is no easy answer. One service told us when asked to answer that question, “If I knew I would be working with you….”