SMU Adjusts Price Momentum Indicator to Higher

Steel Market Update has moved our Price Momentum Indicator on flat rolled products from Neutral to Higher. We continue to reference plate Price Momentum at Lower. This move is being made after the domestic steel mills, led by Nucor, announced two rounds of $40 per ton price increases over the past two weeks.

SMU is making this change at this time as we are beginning to see our spot price index gradually moving higher. Benchmark hot rolled has increased $15 per ton since the first announcement was made. We have seen lead times starting to extend. Steel buyers are reporting mills, such as Steel Dynamics, reporting lead times one to three weeks longer than what they were quoting a few weeks ago. Mill salespeople are doing a better job of holding the line on pricing, especially on coated products.