SMU Price Ranges & Indices: How Much Further Do We Have to Go?

Flat rolled steel prices were mixed this week with three of the four items moving lower and one (galvanized) remaining the same. The questions being asked by buyers – both at the service center and manufacturing level – is how much further do prices need to fall before bouncing back?

The issue of “finding the bottom” is a big one to buyers who are trying to lock in the lowest priced inventories as possible as we head into the New Year. We are hearing that inquiries are high at a number of steel service centers but buyers are still skeptical. We are also hearing that the domestic steel mills are offering prices better than what we have published below for “major” tons and for a specific piece of business. We have chosen to keep those prices out of our index as they do not necessarily represent “spot” prices which are readily available in the industry.