SMU Moves Price Momentum Indicator to Neutral

Today, Steel Market Update adjusted our flat rolled Price Momentum Indicator to Neutral. We are of the opinion, based on intelligence we are gleaning from steel buyers, that steel prices are in transition. We no longer believe prices on hot rolled, cold rolled, galvanized and Galvalume will decline over the next 30 days. However, a “neutral” indicator means prices could fluctuate up or down as the market adjusts to the strength of the domestic order books and the amount of supply available.

On Tuesday, Steel Market Update adjusted our flat rolled indices lower as buyers advised of deals being made late last week on most products. Benchmark hot rolled dropped $20 per ton with prices averaging $460 per ton ($23.00/cwt) FOB domestic mill.