Final Thoughts

Flat rolled steel buyers are feeling a little skittish. Based on the results of last week’s flat rolled and plate steel market trends analysis conducted by Steel Market Update, the threat of higher prices, late mill deliveries and fear of a possible steel shortage situation are making steel buyers nervous (see article above with survey results).

I thought the responses as to when the market would peak were interesting. A few weeks ago we had a large group of steel buyers expressing the opinion that prices were peaking at $650 per ton. We have since passed through $700 per ton ($710 per ton) and there is no immediate sign of relief. Now we are seeing 58 percent of the respondents to last week’s survey believing the market will not peak until February 2021 or beyond (36 percent February, 12 percent March, 5 percent each April or beyond).