Final Thoughts

Final Thoughts
Written by John Packard
September 26, 2014
Everyone continues to watch for how the consolidation of the Severstal NA assets (Dearborn and Columbus steel mills) will impact the flat rolled steel markets. Early indications are for shorter lead times out of the SDI Columbus facility and Dearborn lead times are shorter than the Middletown and Ashland plants for AK Steel. But, it is still very early in the process.
The second item to watch are the ongoing contract negotiations between the domestic mills and their customers. One service center pointed out that if the negotiations are contentious and a large number of companies opt for the spot markets vs. contract markets this could impact mill order patterns and actually create a boost to orders late in 4th Quarter. If you have information about how negotiations are progressing we would like to learn more. Are the mills asking for higher prices? Are any changing their stance on CRU, Platts or any other index being used to adjust pricing?
As always your business is truly appreciated by all of us here at Steel Market Update.
John Packard, Publisher

John Packard
Read more from John PackardLatest in Final Thoughts

Final Thoughts
Sure, demand isn’t as good the market had hoped it would be earlier this year. But assuming it doesn’t fall of a cliff, buyers will have to restock at some point. And that might give domestic mills enough leverage to raise prices again.

Final Thoughts
While I would anticipate market sentiment to pivot and improve if all the questions around tariffs were answered, that still leaves us with a few other factors.

Final Thoughts
Let's see what SMU survey respondents are saying about Trump's tariffs.

Final Thoughts
The Tariff Town amusement park ride shows no signs of slowing down.

Final Thoughts
Cliffs came tantalizing close to buying U.S. Steel in 2023. There were rumors in 2024 that Cliffs might buy NLMK USA before it ultimately purchased Stelco for $2.5 billion in November of last year. Who would have thought that asset sales would have been the focal point of discussion just six months later?