Steel Products Prices North America
September 9, 2018
Methodologies & Other Factors Affecting Price Indices
Written by John Packard
Written by John Packard, President & CEO, Steel Market Update
When I was selling steel for a domestic mill (Winner Steel, now called NLMK Sharon), there was always cause for concern when steel buyers would contact me and reference a price from a trade publication that I knew to be “out of date” with the reality of the market. On one occasion, I reached out to a long-standing publication and asked how they got their galvanized index number. Their response was to ask me where I saw the market spot price to be, and the next day that was the number the publication referenced as “the” number for the marketplace. I knew then there had to be a better way to collect data. Early on (while still at the steel mill), I became a supporter of the CRU indices, which have a basis in truth since they use only transaction pricing.
