Service Centers
November 10, 2015
Spot Pricing Stress Building at Service Centers
Written by John Packard
One of the questions Steel Market Update received from a service center early this week was, “WHEN” will the bottom of the pricing cycle be achieved (the emphasis provided by the person asking the question).
Stress levels continue to build at flat rolled steel distributors as evidenced by the percentage of our service center survey respondents reporting their company as lowering spot pricing into the marketplace. We have reached the point whereby service centers have capitulated and are moving inventory at whatever pricing is necessary in order to raise cash and remove dead (or dying) over-priced steel.
