Final Thoughts

Final Thoughts

Written by John Packard


The Association of Steel Distributors (ASD) will host a Regional Meeting at the Ritz-Carlton Hotel in Cleveland, Ohio on Thursday, September 12th. The keynote speaker for the evening is Ohio Governor, John Kasich. Go to the ASD website for more information and registration: www.SteelDistributors.org.

The ASD will also host their Annual Fall Conference at the Encore Resort at the Wynn Hotel in Las Vegas, NV on October 24 through October 26, 2013.

The Metal Service Center Institute (MSCI) will hold their annual Steel Summit Conference in Schaumburg, IL at the Marriott Renaissance Schaumburg Convention Center Hotel. The conference will be held on September 9th and 10th. For more information got to the MSCI website: www.MSCI.org.

Monday, September 1st is Labor Day and Steel Market Update will not publish again until Tuesday evening, September 2nd.

We will begin our next steel market survey on Tuesday morning, September 2nd.

Our next Monthly Newsletter (Volume 1 issue 2) will be published early next week. We will provide a copy to our existing members. For those who are interested, the cost for an annual subscription to the Monthly Newsletter will be $300. I have had a couple of companies mention that it would be perfect for the president or CEO of their company…

For those in the U.S. enjoy the long Holiday Weekend as summer begins to wind down.

For all of us here at Steel Market Update we truly appreciate your business and support. We couldn’t have lasted this long without you.

Latest in Final Thoughts

Final thoughts

I’ve had discussions with some of you lately about where and when sheet prices might bottom. Some of you say that hot-rolled (HR) coil prices won’t fall below $800 per short ton (st). Others tell me that bigger buyers aren’t interested unless they can get something that starts with a six. Obviously a lot depends on whether we're talking 50 tons or 50,000 tons. I've even gotten some guff about how the drop in US prices is happening only because we’re talking about it happening.

Final thoughts

We’ve all heard a lot about mill “discipline” following a wave of consolidation over the last few years. That discipline is often evident when prices are rising, less so when they are falling. I remember hearing earlier this year that mills weren’t going to let hot-rolled (HR) coil prices fall below $1,000 per short ton (st). Then not below $900/st. Now, some of you tell me that HR prices in the mid/high-$800s are the “1-800 price” – widely available to regular spot buyers. So what comes next, and will mills “hold the line” in the $800s?