Steel Products Prices North America
March 17, 2019
Market Psychology: Steel Prices Could Go Either Way
Written by Tim Triplett
Are steel prices witnessing a dead cat bounce or the beginning of a bullish reversal? The market appears split on the feline vs. bovine analogy. In other words, there is a huge divergence of thought on what is going to happen to steel prices over the next three or four months.
The benchmark price of hot rolled coiled steel peaked at around $915 per ton last summer, according to the Steel Market Update HRC index. HRC then began a steady descent that took it down to $670 per ton by late January—a 27 percent decline. Since then the price has recovered back up over $700. Will this be a soft bounce with no legs (as in a dead cat dropped from some height) or is it the beginning of a bull run?
