SMU Price Ranges & Indices: Up, Down, Sideways...

Flat rolled steel prices were mixed this past week. Benchmark hot rolled continues to be one of the better performing of the group. Our HRC average was up $5 per ton this week. Cold rolled was also up, galvanized was sideways and Galvalume dropped $30 per ton. Plate prices on a delivered basis were up $5 per ton for the week, but don’t read too much into that number… The SMU Price Momentum Indicator is still pointing toward Neutral meaning our perception is there is no clear-cut market direction right now. We expect this lack of leadership to continue until lead times slip into the first quarter. At that point demand, inventory levels and lead times will dictate where prices go from here.

On a side note, SMU did hear from a couple of mills today who admitted things were not quite as rosy as they may have looked a couple of weeks back. A steel buyer sent us the lead time sheet just released by one of their suppliers, which referenced lead times as being one to two weeks shorter than what was being referenced just a few days ago. Is this an isolated incident? SMU will continue to ask and will report when we find out.