Steel Products
Final Thoughts
Written by John Packard
August 7, 2013
SMU doesn’t normally publish obituaries. I found the one about Berthod Beitz former Chairman of Krupp Steel especially touching and important to acknowledge. For the younger generation the idea of death camps and the world at war must be quite foreign. Even those of us born after World War II have only faded memories of the war stories told to us as a child. When Vietnam came along our interest in WWII seemed to vanish. Sometimes it is good to remember and appreciate the past.
Rumors – the air was full of rumors regarding
the potential sale of the former RG Steel Mingo Junction plant (Wheeling Pittsburgh to us old timers). My understanding is no deal has been consummated as of this date but one is expected in the not too distant future. There is a chance that the EAF could come back to life during 1Q 2014. That is the rumor.
ThyssenKrupp Americas – don’t count out ArcelorMittal as the potential winner. CSN is still there but the deal cannot be finished – mostly due to issues at the CSA mill. ThyssenKrupp AG is still trying to get a deal before the end of their fiscal year – at the end of September.
A couple of the buyers essentially called the galvanized market as having hit its peak. “I can’t even fill holes at a $38.00/cwt base with the long lead times and [service center name deleted] selling at CRU,” is what one galvanized distributor told SMU earlier today. He went on to project the galvanized conversion mills would be the first to feel a weakening order book as buyers move to foreign or just stop buying.
This evening, Bank of America Steel Analyst Timna Tanners called a top to the current sheet steel market cycle. She told her customers in a note seen by SMU, “Despite steady and even improving demand, we expect prices are pressured over the next several months by: 1) restarted capacity; 2) imports, and; 3) seasonal pricing pressure.”
There is much to talk about and debate in the days and weeks ahead. We always appreciate comments from our readers which you can do by contacting me directly at: John@SteelMarketUpdate.com.
As always your business is truly appreciated.
John Packard
Read more from John PackardLatest in Steel Products
US steel imports slipped in August after rising in July
July represents the second-lowest monthly rate for steel imports so far this year.
Rig count update: US count dips, Canada flat
Oil and gas drilling activity in the US edged lower last week, while the Canadian rig count held steady at a six-month high.
HR futures: Trade case action official – It was already priced in?!
This month’s column on the markets could be a response to the question of last month, “Are the forward curve prices on Aug. 7 high enough to price in trade case risks?" The market’s answer has been a pretty resounding YES so far, I think.
SMU survey: Lead times edge higher for sheet
Current steel mill lead time averages are a few days longer than levels seen one month prior, but remain near historical lows for both sheet and plate products.
Steel Summit 2024: Hybar CEO accelerating growth plans for US steel market
Hybar CEO David Stickler and SMU Managing Editor Michael Cowden shared a candid conversation about Hybar's ambitious plans on Tuesday morning at the SMU Steel Summit, held in Atlanta this week.