Final Thoughts
Final Thoughts
Written by John Packard
July 29, 2015
First, I want to thank a number of our readers who went out of their way to compliment Steel Market Update on our coverage of the cold rolled trade case in Tuesday’s issue. My background is such that I have been on both sides of the fence – both at a steel mill and representing trading companies. I have also worked with manufacturers around the country as they struggled to remain competitive in a global economy. Our newsletter will not take sides but we will try to present as many opinions and angles to the story as possible. If you have an opinion that you would like to share you are welcome to send it to me at: John@SteelMarketUpdate.com.
On Saturday of this week Steel Market Update will begin our 8th year. We incorporated and began officially selling our newsletter and services on August 1, 2008. One of our early customers (and one of my former steel customers) didn’t know what I would write about after the first 30 days… I guess we fooled him! Thank you to everyone who has helped myself and our team keep Steel Market Update running and competing against those that are bigger, stronger and better financed. Your business has been truly appreciated.
It was a little odd seeing Steel Market Update name in print in a legal petition asking for Critical Circumstances by the domestic mills. No one told us ahead of time and I only discovered that we were cited as a source of industry information (worldwide) when I read a copy of the 63 page document. So, any of you out there who are on a trial to our newsletter – if the mill attorney’s believe what we say… well, what are you waiting for? You can register to become our newest member on our website or, you are welcome to contact our offices at 800-432-3475 (706-216-5440).
Are you attending #SteelSummitConference this year? We will have a big announcement early next week. Hint, it has to do with your mobile device…
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
Another day, another massive gap between the news and market sentiment. On the news side, we’ve got war in the Middle East. The devastation facing western North Carolina coming into tragic focus. And the outcome of the presidential election remains a coin toss, according to current polling.
Final thoughts
There are markets where the headlines and the prices are both crazy. This does not appear to be one of them, at least not yet.
Final thoughts
Washington loomed large in our surveys this week. Two things actually: the upcoming presidential election and the trade case against imported coated products from 10 nations.
Final thoughts
Thanks to everyone who attended our Steel Hedging 101 workshop in Chicago on Wednesday. I learned a lot from StoneX Group’s Spencer Johnson, who instructs the course, and from your good questions. One thing that Spencer said sticks with me as I write this column. Namely, that momentum drives steel prices more than other commodity markets. If you watch steel futures, you’ll see up days and down days. But it’s rare to see the momentum shifting back and forth within any given day.
Final thoughts
SMU's prices ranges for flat-rolled steel were mostly sideways on Tuesday even as futures market shot higher. I got some questions as to why hot-rolled (HR) coil futures shot higher. As best as I can tell, it might have been in response to news that China plans to roll out stimulus measures. We have details on those measures here thanks to our colleagues at CRU. The chart below gives you some idea of just how sharply upward the move in HR futures was earlier on Tuesday: