SMU Price Ranges & Indices: Prices Drifting as Buyers Try to Gauge the "Breeze"

Flat rolled steel prices have been “drifting” over the past few weeks. By that we mean there has been some minor adjustments to pricing on a weekly basis but nothing that would qualify as a trend in one direction or another. Steel buyers are trying to gauge the strength and direction of the breeze blowing prices with most standing back and waiting before making any major inventory adjustments (as in building inventories). It appears most service centers are content to hold inventories at modest levels (2.0 months) and to only buy what is needed.

Hot rolled continues to be the weakest product and our HRC average was down $5 per ton this week due to weakness in the upper end of the HRC range. We are catching adjustments in other products with one mill admitting to SMU earlier today that they took the low end of their base price on coated down to $40.00/cwt for large customers. A second mill told us they are waiting, “Let’s see what happens this week,” were their exact words. A third mill told us their numbers were closer to the high end of our range. So, the market continues to have some flex to it but the limb is not breaking.