July 2017 At-a-Glance

As a monthly average, prices on all flat rolled steel products recovered in July following a dip in June. The month of July ended with SMU’s Price Momentum Indicator continuing to point higher as the market waits to see if and when the Trump administration will act on Section 232 trade measures that could further restrict steel imports. Meanwhile, earlier in the month, leading domestic mills announced $25 per ton price hikes on flat rolled products. President Trump has indicated he may put possible steel tariffs or quotas on the back burner while he turns his attention to other big issues, such as infrastructure and tax reform. If at any point it becomes clear the administration does not intend to act on Section 232, price momentum could shift downward as the flow of imports resumes.

The uncertainty in the marketplace appears to be having a negative effect on steel buyers’ attitudes. SMU’s Steel Buyers Sentiment Index has trended slightly downward since May, both as single data points and as a three-month moving average. Likewise, the Future Buyers Sentiment indicates that respondents to SMU’s survey feel slightly less optimistic about their ability to be successful three to six months in the future.