Conversations with Service Center CEO’s Prompts Lowering of Momentum Indicator

This evening’s price and price momentum discussion comes after a number of conversations held with flat rolled steel service center CEO’s and a trading company executive on Thursday and Friday of last week. The words “mud” and “murky” were prominent as the steel distributors try to figure out where things are headed as we enter 2019.

We heard from flat rolled steel distributors that quoting has dropped off over the past couple of weeks. One very large service center told us that their transaction (spot) quoting has been level to strong, but their contract quotes and releases have fallen off. A second smaller flat rolled distributor told SMU that their business has also slowed due to seasonal factors.