Within the past two weeks nearly all domestic flat roll producers have announced price increases ranging from $40 to $50 per ton for galvanized sheet steel. The mills are basing these increases on stubbornly high raw material costs and a perceived improvement in forward order books. Despite the poor market climate in construction, other flat roll consuming segments such as automotive, energy, and industrial equipment are relatively strong. Thus, mills are “feeling their oats” and pushing to see what they can get. All mills have closed their December order books and several are reporting lead times out into late January 2012.
At this time it is difficult to say how successful US steel companies will be in raising prices further, but there is little doubt that they will continue to announce increases until the market “pushes back.” While there is not yet evidence to suggest the sheet market will experience the dramatic run up in prices that we saw late 4th Q 2010/1st Q 2011, it will only take a slight uptick in demand and/or a reduction in capacity to kick off a potential flurry of activity.
As always, Aegis Metal Framing will keep our fabricator partners posted with the most up to date information possible, so as to allow you to better plan your operations.
Thank you as always for your business.
