SMU Data and Models
February 7, 2020
SMU Adjusts Price Momentum to Neutral
Written by John Packard
Earlier today, Steel Market Update adjusted our Price Momentum Indicators on hot rolled, cold rolled, galvanized and Galvalume to Neutral. What this means is we see market prices in transition, or in a holding pattern, and we no longer expect prices to rise over the next 30 days.
Prior to today we had momentum on these products set at Higher, as the domestic mills had made $190 per ton in price increase announcements going back to late October 2019. The mills were able to collect approximately $100-$120 per ton of the increases. Lately, however, we have seen some of those gains being eroded.
