Final Thoughts
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Final Thoughts
Written by John Packard
January 27, 2016
Dealers are predicting (positioning?) that ferrous scrap prices will move sideways as we move into the month of February. We have been told Turkey is not buying much scrap as they have scaled back production levels to about 70 percent. The current market is a supply driven market (as opposed to demand from the steel mills). The value of the dollar (see Premium report published earlier this week) is keeping the lid on exports.
One of our sources from the east coast told us, “From the people I am speaking with over the last few days, and I am on the same page with them, the market should be sideways in February. The eastern part of the country has seen obsolete flows slow dramatically from the middle of January onward. They will not get much better in February I imagine in the aftermath of the recent snow storm. Mill demand may not be as good as it was at the beginning of January but many of the mills I have spoken to have not received all that they ordered this month either. Railroad traffic is intermittent in part due to the weather.”
February negotiations will be in full force next week. SMU will keep our eye on the market and advise when it comes into focus.
When I decided to put on the Leadership Summit Conference we looked to see what other conferences/conflicts there would be with our early March 2016 date. We spent a year putting together the program and working with the PGA National Resort & Spa believing that if we provided an exceptional program “they would come” (Field of Dreams). As the date got closer we came to realize there were just too many conflicts (MSCI, ASD, FMA, Port of Tampa, corporate meetings, etc.). Second, we found that many companies were being very careful with expenditures with business being slower than anticipated one year ago. The bottom line is we have decided to cancel the conference. We are going to use a number of the speakers in our Steel Summit conference at the end of August and we are working on a special Steel 101 program in conjunction with Big River Steel.
One thing about the steel industry – it is always changing and you have to learn to roll with the punches…
A quick note to those who have Steel Market Update and/or myself in your contact manager. SMU (and I) have moved. Our new address is: Steel Market Update, P.O. Box 1255, Hobe Sound, FL 33475. Our 800 phone number continues as is: 800-432-3475. However, our local phone numbers have changed with the main number now being: 772-245-8630. My cell number remains the same: 770-596-6268 as do all of our email addresses (mine being: John@SteelMarketUpdate.com).
As always your business is truly appreciated by all of us here at Steel Market Update.
John Packard, Pubisher
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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?
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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.
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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.
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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).
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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!