SMU Price Ranges & Indices: Another Day Another Drop in Pricing

Flat rolled prices dropped $5 to $10 per ton this week as the psychology of the market works against the sellers of steel. Hot rolled continues to be the weakest of the flat rolled products due to the energy, mining and agricultural markets. Other products are faring better (regarding demand) but not to the point where prices are able to rise from here. We are hearing of reports of sellers refusing to participate in the lower end of the markets – especially on hot rolled. SDI CEO Mark Millett stated earlier today during their earnings conference call with analysts that hot band was at “prices we weren’t interested in…” He went on to say that SDI was not chasing the numbers.

During our HARDI conference call this morning we heard similar comments from one of the wholesalers who reported to the group that his company “refuses to participate in these low price levels.” He went on to say that he believed that once the labor situation is resolved that steel prices will rise from here. We will have to wait to see if prices do rise any time soon.