SMU Data and Models
April 19, 2020
Service Center Spot - Pandemic Overrides Capitulation
Written by John Packard
If not for the pandemic, SMU would be calling the service centers as being at a point of capitulation. Our expectation would be for the steel mills to announce price increases in the near future. If not for the pandemic.
We have seen both manufacturing companies and service centers reporting spot prices out of the service centers as being lower than two weeks ago. When we find 75 percent or a greater percentage of the steel distributors reporting their company as offering lower spot prices, we normally peg that point as being when service centers are willing/anxious to have the domestic mills announce price increases.
