Final Thoughts
June 24, 2019
Final Thoughts
Written by John Packard
The day started slow, but it seems to have picked up steam after the Nucor announcement. As expected, most of the mills have followed the Nucor lead with NLMK putting specific base prices into the market. The guidance being given in the NLMK announcement is hot rolled at a $560 per ton ($28.00/cwt) minimum base and cold rolled and coated at a $700 per ton ($35.00/cwt) base plus applicable extras. There has not been a price increase on plate.
It is SMU policy to take our Price Momentum Indicator to Neutral when price announcements are made (usually by more than one mill). We do not want to influence future steel prices and our Neutral indicator means prices could go in either direction. Once we have a clear sense on what the direction will be going forward, we will adjust our Indicator. This could take a few days to as much as a few weeks.
