Steel Products Prices North America
December 12, 2017
How High Can Steel Prices Climb?
Written by John Packard
Steel Market Update recently adjusted our Price Momentum Indicator to “Higher” as, in our opinion, steel buyers should anticipate flat rolled steel prices to move up over the next 30 to 60 days. During last week’s analysis of the flat rolled steel market, 78 percent of the respondents agreed with SMU, sensing that pricing momentum has shifted to the domestic mills and that steel prices will be heading higher into the New Year. So, how high do steel buyers expect flat rolled prices to go in the coming months?
Even though our Price Momentum Indicator is pointing toward higher spot prices, there are more factors in play than just momentum. We are carefully watching demand, lead times, negotiation posturing and production at the steel mills. Before we look at what steel buyers have been saying to SMU over the past 24 hours, let’s first take a historical look at pricing and domestic mill production.
