Have Steel Prices Peaked?

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Ferrous Metals

If not, then the peak is possibly in sight, according to Purchasing.com. Drawing on comments made by CIBC Capital Markets, the article states that recent price increases have been more than can be warranted by raw material price increases alone — something long suspected by distributors and consumers alike — and levels now being charged are unsustainable.

Feedback from our own contacts in the market suggest that some major mills are completing June orders early and have spot capacity opportunities available, both of which are an about-face from just a couple of months ago, when requests for additional capacity were flatly declined.

We would be hesitant to call mid summer as the peak, but the availability of more capacity coupled with the room for some price adjustments could be the ingredients needed to bring some sense to the market.

–Stuart Burns

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