Final Thoughts

Final Thoughts

Written by John Packard


I will be in our home office all week this week (a rarity lately). Next week we will be in Starkville, Mississippi to conduct our Steel 101 workshop. Thank you again to Steel Dynamics Columbus for working with SMU and allowing our group to tour the Columbus facility.

We remind everyone who has been thinking of attending our Leadership Summit Conference at PGA National Resort & Spa in Palm Beach Gardens, Florida on March 7-9, 2016 to get registered and remember to register for the hotel. There is a link on our website for the hotel. If you need any assistant in either registering for the hotel or conference please contact our office at 800-432-3475.

We are entertaining adding to the depth of our coverage of the ferrous scrap markets both domestically and internationally. In tonight’s issue is a short article on the ferrous scrap markets written by Philip Hoffman, Chairman and CEO of Hoffman Iron & Steel. For more information about Philip Hoffman please use the following link to go to a Recycling Today article which provides a detailed look at Philip’s background. If you enjoyed the article and would like to read more: please let me know. You can reach me by email at: John@SteelMarketUpdate.com or by phone at 800-432-3475.

When the Chinese began selling cold rolled at prices well under the market SMU pointed it out to our readers. We have been recently pointing at what are probably the replacement countries at the low end of the pricing scale. One, Vietnam, doesn’t actually produce that much steel. So when we reported the license data for Vietnam for the month of December we received the following comment/questions from a trading company:

“[I] Really appreciate your newsletter but I need to question the amount of CR from Vietnam.  Just cannot be correct.  At this point Vietnam CR is limited.  These are orders that would have been placed a few months ago and I am not aware of heavy CR offers or actual orders being placed.  A couple of Vietnamese mills have been pushing hard for GALV but not CR.  I imagine someone may have entered 30,000 tons when they actually meant only 3,000 tons or 300 tons or entered 40,000 tons instead of 400 tons.  Just doesn’t make sense.  If that amount of tons do arrive the only explanation is that the Chinese are producing and calling the origin as Vietnam.  Chinese ships to Vietnam and reload from a Vietnamese port to USA.”

We will be looking into this and I know from a conversation with at least one domestic mill so will their attorneys…

Speaking of trade suits… The government has advised SMU that the hot rolled countervailing duty preliminary determination will be announced tomorrow. We will post an article as soon as we get the results for our members to read. It will be in the scrolling menu of articles on our home page. On Tuesday it will be published, along with feedback we receive from the industry, in our Tuesday evening issue of SMU.

i want to welcome our newest SMU member companies and I want to remind everyone that we encourage interaction between our members and those of us at SMU. If you have an idea for an article, suggestion or question about any of our content or potential content please do not hesitate to reach out to us. We can be reached at info@SteelMarketUpdate.com or by phone at 800-432-3475.

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

John Packard, Publisher

Latest in Final Thoughts

Final thoughts

What's the tea in the steel industry this week? Here's the latest SMU gossip column! Just kidding... kind of. Yes, some of the comments we receive in our weekly flat-rolled market steel buyers' survey are honestly too much to put into print. Some make us laugh. Some make us cringe. Some are cryptic. Most are serious. We appreciate them all. Below are some highlights from our survey results this week. Some of the comments that we can share with you are also included, in italics, in the buyers' own words, with minimal editing on our part.

Final thoughts

Unless you've been under a rock, you know by know that Nucor's published HR price for this week is $760 per short ton, down $65/st from the company’s $825/st a week ago. I could use more colorful words. But I think it’s safe to say that most of the market was not expecting this. For starters, US sheet mills never announce price decreases. (OK, not never. It has come to my attention that Severstal North America rescinded a price increase back on Feb. 14, 2012. And it caused quite the ruckus.)