SMU Market Trends: Support for Higher Prices

Domestic steelmakers raised prices twice during the month of May, by a total of $90-100 per ton, hoping to establish a floor and set the stage for recovery in anticipation of improving demand as coronavirus restrictions ease in June and July. Service center and manufacturing executives responding to Steel Market Update’s market trends questionnaire this past week expect the mills to be at least partially successful in collecting higher prices.

SMU asked: Given current demand, will the domestic mills be able to collect the full price increases leading to $540 hot rolled and $740 cold rolled and coated? The majority (62 percent) expect the mills to collect at least a portion of the increase, while another 9 percent expect them to collect it all. About 22 percent expect prices to remain flat despite the announced increases, while 7 percent expect prices to move lower.