WOODLAND HILLS, Calif.-uly 16, 2013: Analysts with Great American Group, Inc. (OTCBB: GAMR) report pricing for flat rolled steel products has recently increased, with the price range for market transactions also narrowing and stabilizing. The trend reflects the market response to a $50 per-net-ton price hike implemented by major steel mills at the end of May 2013.
“The competition from imports would in turn drive down domestic pricing.”
"The increase follows stronger pricing for ferrous scrap, a primary input for flat rolled steel," noted Michael Petruski, executive vice president for Great American Group's Machinery and Equipment division. "The higher scrap prices were driven by tight supplies as well as higher buying activity just before the Independence Day holiday. Flat rolled steel pricing also benefited from lean inventories."
According to Great American Group's newest monthly Metals Monitor, the stabilized pricing for flat rolled products has made it easier for certain companies to manage their inventory costs, resulting in improved gross margins for the related companies. In addition, service centers may boost their inventory levels for flat rolled steel products as prices continue to firm and lead times rise further.
However, Great American Group recognizes that if prices for flat rolled steel products climb too high, the market may turn.
"If pricing increases too much too quickly, it could spur higher demand for lower-cost imports," explained Petruski. "The competition from imports would in turn drive down domestic pricing."
For more information about industry trends in metals, download Great American Group's latest monthly Metals Monitor available on the company's website at Great American Metals Monitor .
Great American Group is a leading provider of asset disposition and auction solutions, advisory and valuation services, capital investment, and real estate advisory services for an extensive array of companies. A trusted strategic partner at every stage of the business lifecycle, Great American Group efficiently deploys resources with sector expertise to assist companies, lenders, capital providers, private equity investors and professional service firms in maximizing the value of their assets. The company has in-depth experience within the retail, industrial, real estate, healthcare, energy and technology industries. The corporate headquarters is located in Woodland Hills, Calif. with additional offices in Atlanta, Boston, Charlotte, N.C., Chicago, Dallas, Melville, N.Y., New York, Norwalk, Conn., San Francisco, London, Milan and Munich.