SMU Price Ranges & Indices: Are We There..?

The service centers with whom we communicated over the past few days are talking about the “whispers” of a possible price increase announcement. A number have told SMU that mills like SDI Butler and Nucor Berkeley are asking for higher spot prices than what was available two weeks ago. A service center executive told us, “The customers are coming off the sidelines” However, as is generally the case when the word starts to spread with some mills it is too late. This same executive told us, “We are paying $20 to $30 per ton more than a couple of weeks ago.”

The mills are watching and waiting for the right time to make price announcements. Some think that it is just a matter of a day or two thinking that it will happen this week. Whatever the case, our service center executive is of the opinion the price increases will be collected – at least on coated products. “There is an eighty percent chance they will collect on coated,” he told us and then continued, “I am not quite so bullish on hot rolled, maybe they will be able to collect ten dollars.”