SMU Price Momentum Indicator Still at Higher (Why?)

Despite getting pressure to adjust our SMU Price Momentum Indicator due to uncertainty associated with the Section 232 investigation and the lack of a recommendation to date, along with small signs of a need by one or two steel mills for orders on galvanized, SMU is continuing to reference flat rolled steel prices as moving Higher over the next 30 to 60 days.

Over the course of the past four days, Steel Market Update has been conducting one of our flat rolled steel market trends surveys. As we analyzed the results, we noticed we still have more than 50 percent of those manufacturing and service centers responding to our queries reporting that steel mills are willing to negotiate prices (all flat rolled products). We have an article on our findings elsewhere in tonight’s issue of Steel Market Update.