SMU Data and Models
January 13, 2019
Steel Market Trends: Price Hike Coming?
Written by Tim Triplett
If the prevailing view in the market proves correct, steel mills will announce a price increase soon—but it won’t stick. Two out of three steel executives responding to Steel Market Update’s market trends questionnaire this past week believe the mills will announce an increase in flat rolled prices by the end of January. But given the current market conditions, many are skeptical the mills will be able to collect.
Flat rolled steel prices declined steadily in second-half 2018 and are now 10 to 20 percent lower than their peaks last summer. SMU data shows hot rolled currently selling at around $720 per ton, down from its 2018 high of $915. Cold rolled is at $825, down from $1,015, and galvanized has slid to $820 from its high of $1,020.
