Final Thoughts
Final Thoughts
Written by John Packard
March 4, 2015
Steel Market Update just concluded our 5th flat rolled steel market survey earlier today. We have a couple of articles in tonight’s issue associated with our survey results and there will be more on Sunday. Our Premium level members should have access to the latest Power Point presentation on the survey results on our website by late morning on Friday.
I want to welcome our newest members to the Steel Market Update family. I also want to let our newest members know that our office is open to comments and suggestions. We appreciate knowing both what we are doing right as well as what we could do better. I can be reached by email at: John@SteelMarketUpdate.com or on our office phone: 800-432-3475.
We have set a date at the end of April for our next Managing Price Risk workshop. There is quite a bit of interest in futures trading (or in how to hold these lower prices for a longer period of time using futures and options) so we are working on a program focused on some of the issues and opportunities associated with what we are seeing in the market right now (along with the usual protecting of inventory values, margins, etc.). I hope to have the tweaked program ready and online by late next week.
Right now our Steel 101: Introduction to Steel Making & Market Fundamentals workshop on May 19 & 20th in the Chicago area is open for registration. You can find details on our website or by clicking on this link. If you have any questions please do not hesitate to contact us in our office: Info@SteelMarketUpdate.com or 800-432-3475.
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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Now that the USS/Nippon deal has been completed, what's next?
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Getting back to the price increases I mentioned at the top of this article, to what extent are they aimed at raising prices and to what extent are they aimed at stopping the bleeding that was happening in the second half of May, before President Trump announced the 50% tariff?
Final Thoughts
We just wrapped another Steel 101 Workshop, where you take what you learned in the classroom into the steel mill.
Final Thoughts
Steel equities and steel futures fell hard after news broke earlier this week that the US and Mexico might reach an agreement that would result in the 50% Section 232 tariff coming off Mexican steel. The sharp declines didn’t make much sense, especially if, as some reports indicate, Mexico might agree to a fixed quota. They didn't make sense even if steel flows between the US and Mexico remain unchanged.
Final Thoughts
Even before the news about Mexico, I didn’t want to overstate the magnitude of the change in momentum. As far as we could tell, there hadn’t been a frenzy of new ordering following President Trump’s announcement of 50% Section 232 tariffs. But higher tariffs had unquestionably raised prices for imports, which typically provide the floor for domestic pricing. We’d heard, for example, that prices below $800 per short ton for hot-rolled (HR) coil were gone from the domestic market – even for larger buyers.