Final Thoughts
Final Thoughts
Written by John Packard
February 10, 2014
For those of you watching the weather you may be aware that Atlanta is suffering through another winter weather event. Since our offices are located north of Atlanta that means we are suffering as well. The good news for me personally is I decided to spend a few days in Florida after attending the Port of Tampa Steel Conference this past week. As the weather has moved in our date to return to North Georgia keeps moving out….
Thanks to our staff for keeping everything together in my absence. The weather forecast for our area tomorrow is 4″ to 6″ inches of snow. Something tells me I won’t be back in my office tomorrow – maybe on Thursday.
A note about pricing and momentum. We are in a market where not all mills are equal. The most aggressive mills have been the EAF producers while the integrated mills have had less to sell in the spot market. Even so, we are hearing AK Steel has developed some holes in hot rolled and this has been one of the signs I have been waiting for prior to moving our SMU Price Momentum Indicator to Lower from Neutral.
We have heard that ArcelorMittal is suffering from some cold weather related production issues which has been keeping them out of the spot market (or at the higher end of the spot market). As one of our sources stated in our pricing article, the weakness is with conversion and some mini-mills. Not so much with the integrated mills.
Popping to another subject, a reminder that our next Steel 101: Introduction to Steelmaking & Market Fundamentals workshop will be held at The Henry Hotel in Dearborn, Michigan and will include a tour of Severstal Dearborn. This will be our second tour of the Severstal facility and they did an exceptional job the first time around. Space is limited for this program so you will want to register early. You can do so on our website or feel free to contact our office with any questions you might have (800-432-3475 or info@SteelMarketUpdate.com).
As always your business is truly appreciated by all of us here at Steel Market Update.
John Packard
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Final thoughts
I think all of us know that sometimes courtships go wrong. A misplaced word or deed and soon things can go sideways, and not in the prices sense. Such could be the case with Japanese steelmaker Nippon Steel’s play for U.S. Steel.
Final thoughts
We’re starting to see some impacts of the big trade case filed last week against imports of coated flat-rolled steel from 10 nations. Namely, we’ve heard that a range of traders have stopped offering material from Vietnam. An alleged dumping margin of nearly 160% will do that. Especially amid chatter of critical circumstances.
Final thoughts
The phrase “political football” has been tossed around a lot lately. (Pun probably intended.) For the humble journalists at SMU who thought the week following Steel Summit would prove a quiet one… the news cycle had other ideas
Final thoughts
Sheet prices didn’t roar back after Labor Day. But steel market news sure came out of the gate strong (or maybe chaotically is the better way to put it). First, the nearly $15-billion proposed sale of U.S. Steel to Nippon Steel exploded into the news. And when I say exploded, I mean that all sides seem to be escalating things now.
Final thoughts
Welcome back from Labor Day, from Steel Summit, and from whatever fun you might have had over the long weekend. Personally, I enjoyed camping with friends and family near Starved Rock. No one starved, there were no major injuries, and we enjoyed the many splendors of Mystical Fire. (Speaking of which, does that have industrial uses? But I digress.)