Final Thoughts
Final Thoughts
Written by John Packard
January 30, 2014
A good portion of the Steel Market Update team is bolting for Mobile on Monday to prepare for our next Steel 101 workshop. We are looking forward to having a spirited workshop and we are appreciative of the efforts of our host steel mill – SSAB – as they prepare for our workshop touring their facility.
Our next Steel 101 workshop will be held in Dearborn, Michigan and the host mill will once again be Severstal Dearborn. We have already begun to take registrations for Dearborn and we do expect to sell out fairly quickly based on the feedback we have been receiving from those interested. You can get more information on our website.
After Mobile I will be traveling to Tampa to participate in the Port of Tampa Steel Conference on Thursday evening and Friday morning. By the way – the cost of the conference is $195 per person. You can find more information about the agenda/speakers, etc. on the Port’s website.
It’s Super Bowl Sunday – enjoy the game and we will speak more from Mobile later this week.
On Monday our early February market analysis will begin. Look for your invitations around 8 AM ET and please take a few moments to click on the link contained in the message and complete our survey.
As always your business is truly appreciated by all of us here at Steel Market Update.
John Packard, Publisher
John Packard
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Final Thoughts
Even before the news about Mexico, I didn’t want to overstate the magnitude of the change in momentum. As far as we could tell, there hadn’t been a frenzy of new ordering following President Trump’s announcement of 50% Section 232 tariffs. But higher tariffs had unquestionably raised prices for imports, which typically provide the floor for domestic pricing. We’d heard, for example, that prices below $800 per short ton for hot-rolled (HR) coil were gone from the domestic market – even for larger buyers.
Final Thoughts
I want to draw your attention to SMU’s monthly scrap market survey. It’s a premium feature that complements our long-running steel market survey. We’ve been running our scrap survey since late January. And over just that short time, it’s become a valuable way not only for us to assess where scrap prices might go but also to quantify some of the “fuzzy” indicators - like sentiment and flows - that help to put the price in context.
Final Thoughts
I think there is an obvious case for sheet and plate prices going higher from here. That’s because, on a very basic level, the floor for flat-rolled steel prices, which is typically provided by imports, is now significantly higher than it was a week ago.
Final Thoughts
We're about to hit 50% Section 232 steel tariffs. What could happen?
Final Thoughts
With higher tariff rates on steel and aluminum set to go into effect on Wednesday, June 4, a new round of chaos across the supply chain is likely in store. Expect a significant impact on manufacturers and metal fabricators. But even before the latest round of Trump-tariff whiplash on Friday evening, there was a lot of interesting data coming out of SMU's steel-market survey.