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What is a steel pricing index?

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A steel pricing index is an average of price variations or a tool that indicates the extent to which the price of steel changes over a given period. Some steel price indexes indicate the change in the prices of raw materials, such as iron ore, for steel producers.

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Other price indexes indicate the price of various types of steel, such a stainless, carbon and industrial steel for use in various industries. The steel price indexes are important tools for planning and economic forecasting, since steel is used in a variety of industries, such as automobile manufacturing and construction. An increase in the raw materials or finished steel prices may indicate the economy is experiencing inflation, while a dramatic drop in prices can indicate an overabundance of supply or a decrease in manufacturing and consumer demand, economic growth and employment.

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