SMU Price Ranges & Indices: Mixed Results, Bottom In?

We gathered mixed results regarding flat rolled and plate steel pricing over the past two days. When we say mixed, we don’t mean some prices falling while other prices were rising. What we found was pricing stable to rising. We heard from a number of buyers that there were mills still actively pursuing prices at, or near, the lows of the market. One steel mill executive told SMU their prices were up $10 to $15 per ton and they were waiting to see how strong an order book they had this week. In our HARDI galvanized call this morning, one of the steel buyers told those on the call that he was being solicited by a couple of mills needing galvanized orders. We also heard from another buyer (not on that call and 800 miles away) that they, too, were being asked for galvanized tons (albeit at higher than the very low base pricing they had prior to the announcement). Steel Market Update has our flat rolled price momentum at Neutral and our plate momentum indicator at Lower. We will see as the week progresses if a stronger flat rolled market carries over to plate (the strong plate market had little impact on flat rolled over the past six months).

Here is how we see prices this week: