Final Thoughts

 – Spot iron ore pricing is dropping in China. Today’s rate was $45.1/dmt for 62% Fe fines. This is down about $10/dmt over the past few weeks. Iron ore is expected to continue to fall and could breach the $40/dmt level due to slowing conditions in China.
 – The domestic steel mills lead times and order books are still not quite at the levels they need to be. This may be changing as I mentioned in the last issue of SMU. This is the one item buyers need to watch very carefully.
 – Sentiment is down and the market psychology is negative – even though many customers expect 2016 to be a good year (better than 2015).
 – Inventories are still too high at the service centers. I will address this issue tomorrow to our Premium customers when I provide how we did with our last forecast and what we expect going forward. We do anticipate inventories dropping and I do have a mild upward trend in our HR pricing forecast going into 2016.

You will notice that we are beginning to role out pieces of our Leadership Summit program. Registration is open for both the conference and the hotel. Both the conference and the hotel are limited so we recommend that you register as soon as possible. We have broken out details regarding the pricing for the conference in the article announcing Diane Thieldfolt pf The Learning Cafe as one of our presenters.

We will have more coming on the Leadership Summit in the coming days. If you have any questions please contact either Ray Culley (Ray.Culley@SteelMarketUpdate.com) or myself: John@SteelMarketUpdate.com (800) 432-3475.

As always your business is truly appreciated by all of us at Steel Market Update.