Final Thoughts
Final Thoughts
Written by John Packard
December 9, 2015
I expect the other domestic mills to go along with price increases of their own – whether they choose to announce the move may depend on what they feel is in their best interest. I would anticipate that Nucor will come out with their own announcement. US Steel and ArcelorMittal are in the process of negotiating labor contracts and they may be more reserved with any kind of public display announcing higher prices when they are trying to get concessions out of their customers. As we write this article we are aware of three mills having announced increases: NLMK USA, Northstar Bluescope and AK Steel.
Nothing is a for sure when these kinds of announcements are made. If you have a couple of mills who do not support the move, for whatever reason, the whole thing can come crashing down. At this moment, my opinion is that the mills will collect somewhere around $30-$40 per ton above the business levels being used this past week.
We have two exceptional events happening in early 2016. We still have room in our Steel 101: Introduction to Steel Making & Market Fundamentals workshop which will be held on January 19-20, 2016 in Starkville, MS. The workshop also includes a tour of the SDI Columbus, MS steel mill which is located about 20 minutes away from the brand new Marriott hotel where the classes will be held. Details are on our website or you can contact us at 800-432-3475 or by email: info@SteelMarketUpdate.com.
We also have our Leadership Summit Conference which will be held on March 7-9, 2016 in Palm Beach Gardens, Florida. This conference will be different from anything we have done in the past and we have some exceptional speakers who will share insights into: the Economy, antidumping and countervailing trades suits, managing different generations in the work place (especially those pesky Millennials), creating a competitive advantage and understanding the new steels – from automotive to construction. Registration is open and we have a $250 early bird discount for those who register through January 1, 2016. Details are on our website. The conference is being held at the beautiful PGA National Resort & Spa and we are limiting the number of attendees. Please contact us with any questions you might have: 800-432-3475 or info@SteelMarketUpdate.com.
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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!