Analysis
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
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Final Thoughts
SMU’s hot-rolled coil price increased for a third consecutive week. And the gains were more pronounced this time following a price hike initiated on Friday by NLMK USA.
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SMU digs into the vault to look back at an old survey, and to tell what exciting things are still to come.