Final Thoughts

Final Thoughts

Written by John Packard


It is Tuesday evening and I continue to multi-task as the moving company shows up at 8 AM on Wednesday and after 15 years in the same location there is much to do to get ready for the move. For those that did not catch my note about this in the last issue, Steel Market Update is moving its headquarters from Georgia to Florida. We are looking forward to the change (especially the winter weather) and how being in Florida will help us develop more workshops and conferences in the sunny state. Our first conference being our Leadership Conference which will be held in Palm Beach Gardens at the PGA National Resort and Spa on March 7-9. More details will be coming soon.

But, there are moving boxes to fill so I will keep my final thoughts brief this evening.

Thank you again for your business which is truly appreciated by all of us here at Steel Market Update.

John Packard, Publisher

Latest in Final Thoughts

Final thoughts

I’ve had discussions with some of you lately about where and when sheet prices might bottom. Some of you say that hot-rolled (HR) coil prices won’t fall below $800 per short ton (st). Others tell me that bigger buyers aren’t interested unless they can get something that starts with a six. Obviously a lot depends on whether we're talking 50 tons or 50,000 tons. I've even gotten some guff about how the drop in US prices is happening only because we’re talking about it happening.

Final thoughts

We’ve all heard a lot about mill “discipline” following a wave of consolidation over the last few years. That discipline is often evident when prices are rising, less so when they are falling. I remember hearing earlier this year that mills weren’t going to let hot-rolled (HR) coil prices fall below $1,000 per short ton (st). Then not below $900/st. Now, some of you tell me that HR prices in the mid/high-$800s are the “1-800 price” – widely available to regular spot buyers. So what comes next, and will mills “hold the line” in the $800s?