Final Thoughts

Final Thoughts
Written by John Packard
February 9, 2015
I have been speaking with a number of service centers involved in the secondary side of the steel industry. Although early in my investigation, I am learning that no one really knows how the huge drop in scrap prices will ultimately affect the secondary markets. Usually there is a relationship between secondary steel prices and scrap. I learned that as prime prices fall secondary prices usually move as well but not necessarily in equal amounts. We will dig some more to see what we can learn about secondary price movements in comparison to prime and scrap price changes.
We are taking reservations for our next Steel 101: Introduction to Steel Making & Market Fundamentals workshop which will be held in the Chicago area and will include a tour of the NLMK mini mill in Portage, Indiana. You can find details about our program, instructors, cost and registration on our website: www.SteelMarketUpdate.com in the Events section. If you have any questions do not hesitate to contact our office: 800-432-3475 or, info@SteelMarketUpdate.com.
In light of the large drop in flat rolled steel pricing, we are hearing from a number of our readers asking for more details regarding how to get “firm fixed” pricing over an extended period of time. Andre Marshall and I have discussed doing one of our Managing Price Risk II workshops with a special focus on the current market conditions. If you are interested in attending such a workshop please advise as we are looking at prospective dates and locations. The more interest we have the sooner we can justify putting on one of our programs. Please contact me at: John@SteelMarketUpdate.com if you are interested.
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: AMU brings the news
Usually, I write about steel in this column because, well, we’re Steel Market Update. But before I get to steel, I want to give a shoutout to my colleagues at Aluminum Market Update (AMU) – SMU’s new sister publication.

Final Thoughts
If I could change something, it’d be this: Political news would get more boring. And news about steel prices and steel demand would get a little more exciting.

Final Thoughts: Survey says edition
SMU’s latest survey results indicate that steel market participants think sheet prices are at or near a bottom. But most also think there is limited upside once they inflect higher.

Final Thoughts
A recent IIMA meeting in Brazil shows how the US and much of the rest of the world are operating in parallel realities.

Final Thoughts
We moved our pricing momentum indicators from “lower” to “neutral” for all sheet products this week. For those keeping score, we had been at “lower” for six weeks. And I know some of you think we should have been there for even longer.