SMU Data and Models
December 23, 2018
Service Centers Close to Capitulation
Written by John Packard
Service centers are perilously close to capitulation as the percentage of respondents reporting service centers as lowering spot prices continues to increase.
Manufacturing companies are telling Steel Market Update that they are receiving lower and lower spot pricing from their service center suppliers. In our latest flat rolled steel market trends analysis conducted this past week, 92 percent of the manufacturing companies responding to our survey reported distributors as lowering pricing. Earlier this month, 93 percent of the OEMs were making that claim. As you can see by the graphic below, you have to go back a few months to see any spot pricing support by the steel distributors.
