This week will be the last week we will use the old USS extras in our .060″ G90 galvanized index and cost calculations. The extra is changing from $3.00/cwt to $3.45/cwt. Please make a note of this.
Before the end of this week we will revise our Price Estimator on the website to incorporate the new U.S. Steel extras. If you have not used our Price Estimator on our website you can click on the tab at the top of the website page or click on this link to go to the Estimator. Our Estimator is a free service that can be used to calculate the prospective cost of hot rolled, cold rolled, galvanized or Galvalume steels. If you have any questions please contact us at: info@SteelMarketUpdate.com
We have included a new Premium Level article about regional and state GDP just so that you are aware of its existence. Earlier today we produced a Premium supplemental issue which included that article as well as the Chicago Fed National Activity Index article and steel supply produced by SMU contributing writer, Peter Wright.
With the threat of dumping suits on cold rolled and coated products out of Asia, look toward Europe to become a bigger player in the U.S. market. As I reviewed the August license data for hot dipped galvanized steel I noticed tonnage coming from Spain, Italy, Germany, Netherlands, France and the United Kingdom. The UK went from zero tons over the past few months to 3,800 net tons of license requests in August. Spain is another country which was probably averaging less than 100 tons of galvanized exports to the U.S. a month and, now in August, they have asked for 5,200 net tons of licenses. Italy has been a fairly consistent supplier this year but, when you look at their trend line, their tonnage has been growing. Italy has gone from being a miniscule supplier of about a couple hundred tons per month in June and July 2013 to 14,000 net tons in July 2014. If dumping suits are filed, I would anticipate more tonnage out of Europe.
A quote from Tuesday evening’s Armada Corporate Intelligence report, “But, at some point in time, we knew that the positive momentum would overtake and overwhelm the sluggish elements of the economy. We could be at that point.” They go on to ask a question, “So, here is the key question for each of you. If we see 4% growth in each of the next two quarters, are we of a mindset to handle it? It feels like a positive storm of growth – and one that could provide a significant amount of tailwinds. But, even sailboats in a downwind run can get blown over – if the captains of those ships aren’t prepared to handle that robust push….”
We are now one week away and we hope that we will be seeing you in Atlanta.
Our Steel 101 workshop in Fort Wayne, Indiana is now two thirds sold out. You can find details about our program, instructors and our tour of Steel Dynamics on our website. The dates for the workshop are October 7 & 8, 2014. By the way, we have a number of women registered for this workshop (and most of our workshops) for those who might be concerned that you, as a woman, would be the only one…
A warm welcome to our newest members – both Executive and Premium. I want to let you know that we encourage interaction and welcome questions, comments and suggestions. You can reach us at info@SteelMarketUpdate.com
As always your business is truly appreciated by all of us here at Steel Market Update.
John Packard, Publisher
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A big "thank you" to Wolfe Research and Timna Tanners for organizing a lunch in today in Chicago with a group of steel industry participants and investors.