Steel prices attempt to catch up with rising costs

The analytical service of Sales magazine “Metal Supply and Sales” continues its publication of the MCC-TP Index (Market Temperature Index). The index value is determined through weekly expert surveys.

In early April, nearly all experts noted rising prices for steel products. While the situation in the hot-rolled steel sector had previously been characterized negatively, the survey results for the past week indicate stabilization, with a forecast of slow price growth for this product going forward. In two other product categories (reinforcing bars and medium-sized profile pipes), most experts expect price increases to varying degrees.

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However, alongside rising price quotes, costs are also climbing. Costs have been in an upward trend since early December and continue to rise, with growth rates gradually accelerating. This trend is even more pronounced in forward-looking estimates.

The value of the "MCC-TP Results" Index for the past workweek (March 31–April 4) continued to rise, adding 0.64 percentage points (p.p.) compared to the previous period to reach 51.81 points. For four consecutive weeks, the index has remained above the 50-point threshold, which separates observed growth from decline.

Expectations have been rated higher than actual results for the third week in a row, though the gap between them is narrowing. The "MCC-TP. Expectations" Index for the current workweek (April 7–11) increased by 0.48 p.p., reaching 52.35 points. It has remained above the equilibrium level for the past five weeks.

The expert survey asks participants to evaluate, on a 10-point scale, the results of the past week and expectations for the upcoming week for the following products: medium-sized A500C reinforcing bars (12–16 mm), hot-rolled St3 steel sheet (4–10 mm thickness), medium-sized profile pipes (60x40 – 80x80)

Parameters assessed include:
- Sales (in monetary terms)
- Demand (consumer demand, measured in physical terms – by tonnage, number of inquiries)
- Warehouse inventories
- Purchases (by tonnage – purchases of rolled steel from producers by distributors)
- Costs (energy, labor, taxes, raw materials, and other factors affecting production costs)
- Prices