One item I keep hearing from the service centers I speak with – and it doesn’t matter what the product is – hot rolled, galvanized, Galvalume I am hearing the same thing. Business is good, in some cases excellent, but margins are being squeezed. Competition appears to be willing to move off inventory for whatever reason and at whatever price. As one large service center put it, “The competition has lost price discipline.”
We had one service center in the Houston area tell us that they are worried about all of the cheap steel sitting at the port and more coming in. They reported inbound Russian hot rolled in the $580-$585 range CIF, Duty Paid, Port of Houston. Deliveries at that price level are coming through the remainder of the year. The new price offers on Russian HR into Houston are $610 per ton but we don’t believe there will be many buyers at that price with domestic HR numbers sliding at this moment.
Our next survey will begin first thing on Monday morning. If you would like to be added to our invitation list please shoot me an email: John@SteelMarketUpdate.com
Our Steel 101 team will be in Fort Wayne, Indiana as we conduct our next workshop in conjunction with Steel Dynamics. A special thank you to SDI for working with SMU and being supportive of our educational efforts.
The next Steel 101 will be in the Charleston, South Carolina area and will include a tour of the Nucor Berkeley steel mill. We thank Nucor as well for their support. This will be the second Nucor mill we will have worked with since we began offering our Steel 101: Introduction to Steelmaking & Market Fundamentals workshops.
You can find out more details about our Steel 101 and other workshops on our website.
As always your business is truly appreciated by all of us here at Steel Market Update.
John Packard, Publisher
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