Final Thoughts

As expected, the domestic steel mills began 2017 right where they left off. Another $30-$40 per ton of price increases on top of the $140 per ton of increases leveled on their spot customers since late October through the end of 2016. The key from here is if business, both at the steel mills, as well as at their customers, is strong enough to sustain momentum through a building of real demand. My initial reaction is that the steel mills will be able to collect these increases as they are (somewhat) psychologically justified with the rising cost of scrap here in the United States.

We have also seen international prices rising as well (not necessarily in tandem or to the same degree). The impact of the trade suits has not yet been totally felt and there could be further tightening of flat rolled and plate supplies in the coming months.