Flat Rolled Demand: Steel Buyers Commentary

Steel buyers and executives associated with the service center industry are reporting to Steel Market Update that end users are accepting that we are in a higher priced flat rolled steel environment and most have placed their first quarter 2017 tons. The expectation is for the market to “pause” here due to the holidays which are now just over a week away.

One large service center told Steel Market Update, “Data points are erratic this week.  Mills seem to have finally closed out the last of 2016 deals, so now we have to see who books well in January.  Quoting customers is a mixed bag if a competitor has old inventory or took a position using end-of-year deals.  The rapid fire price increases may have encouraged many to reload on inventory and protect their most stable and reliable customers, so if you’re quoting new replacement costs the difference can look shocking.  Of course, we’re doing the same thing back on the many customers we’ve positioned inventory for.”