Steel Products Prices North America
December 1, 2015
SMU Price Ranges & Indices: Are We at the Bottom Yet?
Written by John Packard
The frustration is beginning to build in the voices of some of the steel buyers as they deal with continuing depreciating flat rolled steel inventories. Prices have been falling since the middle of May 2015 when prices hit a cycle peak of $685 per ton ($34.25/cwt). With our latest adjustment to our hot rolled coil index the market has almost halved the value of HRC compared to where it was in May.
The question on everyone’s tongue is if the bottom is within view. SMU is hearing from some buyers that they can no longer wait for whatever the bottom will look like, it is time to buy. One manufacturing company told us in an email today that they were too busy placing steel orders and could not respond to our latest flat rolled steel market analysis invitation. A service center executive also told us that he was seeing their customers beginning to make commitments (although competition is tough and margins are being squeezed).
