SMU Price Momentum Indicator on Flat Rolled Adjusted to Lower

A couple of months ago, Steel Market Update was speaking in front of a group from the financial community. We were asked, “What do you look for as a sign when prices are about to change direction?” Our answer was a mill price increase announcement.

Earlier this week, ArcelorMittal USA announced a $30 per ton price increase on cold rolled and coated products. SMU found the coated announcement a bit odd since we have been watching a collapse of zinc pricing on the LME for some time now (zinc is used to coat cold rolled or hot rolled substrate to make galvanized steel). The last price increase announcement was back on April 19 when ArcelorMittal USA advised an across-the-board $50 per ton increase, placing a floor on hot rolled at $900 per ton. Since then, the mills have been silent (and prices either rose or remained stable).