In the past month, flat rolled steel sheet and plate prices have surged higher than they have been in over a year. Manufacturing and steel distribution warehouse purchasers have been left wondering if prices will continue to increase; and, when the market will flat-line.
Since December, hot rolled steel prices are up over fifty (50) percent. In Camden Yards Steel's and well as many industry expert's opinion, numbers are going to keep rising across the market.
It may be a ways off before we see a plateau in flat rolled steel sheet and steel plate prices; and, many experts believe that there may be more potential price hike increases as the steel market waits for scrap price announcements.
The reason for such aggressive domestic mill price increases to master processors (Camden Yards Steel) and the entire steel supply chain is mainly due to three contributing factors:
- The continual rise in scrap prices both domestically and worldwide
- The market's anticipation of the impending announcements of the final duty margin rulings on the major flat rolled steel anti-dumping trade cases levied by the Department of Commerce against foreign producers
- Exacerbated domestic mill lead times as foreign supply in the market is scarce.
Because domestic carbon flat rolled inventories are so low across the market, purchasers have seen multiple price changes and spikes in the past few weeks. These increases have not been limited to end users as processors have withstood five price hikes on hot rolled steel coil, cold rolled steel coil, and galvanized steel coil since December 2015.
Buyers at all levels of the supply chain should expect to see prices rise higher as scrap prices are expected to continue to rise, imports and foreign steel inventories continue to plunge due to the anti-dumping and critical circumstances cases, and the domestic mills curtail supply and deplete domestic steel inventories in the market. This is a supply driven charge in pricing as demand in the market has remained relatively the same over the past few years.
With that being said, Camden Yards Steel has anticipated this market shift and currently has great numbers in inventory. If you need any flat rolled steel sheet or plate, or are considering hedging against further price increases in the market, please give us a call today at 888-373-9300.
As always, thanks for stopping by!