SMU Data and Models
October 30, 2016
SMU Price Momentum Indicator Adjusted to “Higher”
Written by John Packard
Steel Market Update (SMU) is adjusting our Price Momentum Indicator to “Higher” from Neutral. It is our opinion that flat rolled steel prices in the United States and Canada will move higher over the next 30 to 60 days. There are a number of reasons why we have chosen to make this move now, here are just a few:
It has been one week since the domestic steel mills, prompted by US Steel, began raising flat rolled steel prices. The steel mills in both the U.S. and Canada have been consistent, with each announcing a $30 per ton price increase. We did not see any mills supplying a specific base price as being “the” number. However, steel buyers are reporting HRC offers as being in the $480-$500 per ton range ($24.00/cwt-$25.00/cwt).
