SMU Data and Models
June 3, 2018
SMU Price Momentum Indicator Pointing Toward Higher Steel Prices
Written by John Packard
With the Trump administration eliminating the Section 232 tariff exclusions for Canada, Mexico and the European Union, it is our opinion that the squeeze on supply coupled with higher prices due to the tariff will provide cover for the domestic steel mills to raise flat rolled and plate steel prices.
SMU last moved our Price Momentum Indicator six weeks ago when we went from “Higher” to “Neutral.” As we explained at that time, we saw the market as being in transition, but we could not be certain in what direction flat rolled steel prices would move. At that time, we kept plate steel price momentum at “Higher” as there was, in our opinion, more upward pressure on plate prices than what we were seeing on flat rolled.
