Final Thoughts

We have adjusted our plate price momentum indicator from neutral to lower. Prices have been dropping over the past couple of weeks, and steel buyers are very negative on the markets right now (see some of the comments in an article above).

I have to tell you I am really struggling with all of the information I am collecting as I try to determine whether flat rolled price momentum is on the side of the steel mills, uncertain, or on the side of the steel buyers. Prices have been sliding recently and did again this week based on the data we collected. At the same time, some steel buyers are reporting extended mill lead times and anticipate higher scrap numbers coming next week (our sources are reporting a “strong sideways” to up $20 depending on the market and product). A few buyers have told SMU the steel mills are becoming more rigid in trying to hold their existing numbers. We are also hearing whispers of a pending price announcement out of the domestic mills as they attempt to stop the slide and stabilize the markets.