Steel Products
Final Thoughts
Written by John Packard
January 18, 2013
Three mills are out this week attempting to dump steel quickly in the marketplace at $560-$580 per ton. The lead mill is known to do this just prior to announcing a price increase. SMU is being told the mills are asking for large block tons of hot rolled in order to book at these levels. Whether or not they are getting any takers is up for discussion – I guess if we get an announcement in a day or two then the lead mill was successful in getting their mill filled.
The steel analysts have been pushing the steel mills to announce a price increase. I have seen a number of analysts from Timna Tanners to Sal Tharani making statements to their clients that a price increase should not come as a surprise.
I have spoken to a number of large steel buyers on the subject and most think that there will be an attempt to stop the erosion of prices if only for a short period of time. A price increase announcement may stop the slide and prompt some orders believed to be sitting on the sidelines. However, when I ask steel buyers if they have orders to place – even at low numbers – I generally do not get yes as an answer. There does not appear to be too many speculators in this market and, as one large OEM buyer told me, “There’s just too much capacity chasing too little demand.”
Will a price increase “stick?” – that depends on how many orders are sitting in buyers pockets and what kind of patience steel mills have before they chase tons by dropping steel prices.
A quick reminder that our Steel 101 workshop registration is open and available online – www.SteelMarketUpdate.com – or through our office (800-432-3475).
As always your business is truly appreciated.
John Packard
Read more from John PackardLatest in Steel Products
SMU Steel Demand Index dips into contraction
SMU’s Steel Demand Index has moved into contraction, according to late April indicators. The slowdown comes in response to growing tariff uncertainty after the index reached a four-year high in late February.
Nucor selects Fives Group for new galv line at CSI
Nucor Corp. has tapped Fives Group as its partner in designing and manufacturing the new continuous galvanizing line being added at its California Steel Industries (CSI) joint venture in Fontana, Calif.
AISI: Raw steel production levels off near six-month high
The volume of raw steel produced by US mills remained relatively flat last week, maintaining the rebound seen one week prior, according to the American Iron and Steel Institute (AISI). Previously at the second-highest rate of the year, production continues to hold at one the strongest levels recorded over the last six months.
Nucor keeps HRC price unchanged
Nucor has kept its weekly hot-rolled (HR) coil price flat this week, after a marginal cut the previous week.
SMU flat-rolled market survey results now available
SMU’s latest steel buyers market survey results are now available on our website to all premium members. After logging in at steelmarketupdate.com, visit the pricing and analysis tab and look under the “survey results” section for “latest survey results.” Past survey results are also available under that selection. If you need help accessing the survey results, or if […]