Final Thoughts
Final Thoughts
Written by John Packard
July 22, 2015
A quote from one of our Steel Summit 2015 keynote speakers, “Although the price of oil seems to be more tied to the dollar, there is some supply and demand factors that can impact the magnitude of the impact of the dollar’s value on the per barrel price. Therefore, we have to watch what the introduction of Iranian oil on the market will do to the price, and what happens if we get some sort of supply disruption. For now, the dollar is going to get stronger over the next few quarters and the price of oil is going to continue to go down.”
As Sandra Williams pointed out in her article about Nucor in tonight’s issue (above), the steel mills are stoked with the new wording they got through the U.S. Congress. There was a structural tubing trade case announced earlier this week. Over time, as HSS tubing inventories start to dwindle there will be an impact on hot rolled sales out of the domestic mills here in the United States. The rumor mill is flush with those who believe that there will be a cold rolled trade suit filed before the end of this month (we also believe that a suit will be filed). With the new trade language look for the mills to take an aggressive stance and perhaps pick on a lot more countries than what you would expect. We all know China will be hit but they won’t be alone. Hot rolled suits could follow in the coming months.
My fear is the steel mills will put U.S. manufacturing companies in a position where they have no choice but to move business offshore. I spoke with a manufacturing company about this just the other day and their opinion was not comforting for U.S. manufacturing.
This could lead to a very interesting discussion between Dan DiMicco, who will be a keynote speaker in the early afternoon on Day 2 of our Steel Summit Conference, and the manufacturing companies in attendance. I think they all agree that re-shoring or returning manufacturing to the U.S. would be a good thing. Where they may disagree is what place costs such as steel play in the equation.
Right after Dan DiMicco’s keynote will be our government and trade panel which may be the strongest single panel we have assembled for this year’s conference. We will have Kevin Dempsey of the AISI, Richard Chriss of the AIIS and trade attorney Lewis E Leibowitz to discuss antidumping suits (and there may be a lot of them by then), the new trade language and what is best for American workers and consumers.
Yes, you can still register for the conference. You can register on our website at: www.SteelMarketUpdate.com or by contacting our office at 800-432-3475. Yes, we do allow invoices to be sent out and payment by company check. If you would like a brochure with the program and other materials please send an email to: info@SteelMarketUpdate.com. Share it with your friends…
I will have more about my upcoming travels aboard one of the Interlake Steamship Company vessels on the Great Lakes in the coming days. The James R Barker that I was originally scheduled to travel was moved to another port to carry coal. So, we are working on schedules to see if I can get on another one of the 1000 foot vessels out of Minnesota.
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 has heard from some larger buyers who have stepped back into the market to buy at prices that, if not at a bottom, they assess to be close to one. Is it enough to stretch out lead times and send prices upward again? Or do we continue to scrape along the mid-$600s per short ton (st) as we have been doing for most of the last month?
Final thoughts
Cleveland-Cliffs Chairman, President and CEO Lourenco Goncalves had some insightful things to say today about the steel market and about a conference we suspect might be Steel Summit.
Final thoughts
They say a picture is worth a thousand words. Well, when you add in some commentary from respected peers in the steel industry to those pictures, that may shoot you up to five thousand words, at least. In that spirit, we’ve added some snapshots from our market survey this week, along with some comments from market participants.
Final thoughts
I thought we’d have more clarity this week on Section 232, Mexico, and a potential carve-out for steel melted and poured in Brazil. As of right now, the only official comment I have is from the Office of the United States Trade Representative (USTR).
Final thoughts
There are just 40 days left until the 2024 SMU Steel Summit gets underway on Aug. 26 at the Georgia International Convention Center (GICC) in Atlanta. And I’m pleased to announce that it's official now: More than 1,000 people have registered to at attend! Another big development: The desktop version of the networking app for the event has officially launched!