Final Thoughts

Final Thoughts

Written by John Packard


We will begin our early February flat rolled steel market analysis on Monday. If you receive an invitation to participate please take a few moments to click on the link and respond to our questionnaire. We will produce a few articles on the results of our queries on Thursday for our Executive level members. Our Premium members will have access to our Power Point presentation on Friday afternoon once we have posted it on our website.

Scrap prices are starting to trade and the early trades have been at sideways numbers (same as January). However, the long term prognosis for scrap prices is not so rosy. Here is what one of our sources told us late on Friday, “Feb trading is just beginning but initial sales are sideways.  On a broad scale we are seeing lower demand as mills have restocked and order books remain weak, this is balanced by short supply due to weather and transportation issues.  Although recent export sales to Turkey have dropped over $10mt US exporters have not dropped buy prices because they are still covering old sales at the higher levels. It is my opinion March will bring lower prices as weather improves and export will continue to drop.”

I want to welcome our newest members and I want to remind all of our readers that we are available should you have any questions, comments or suggestions. We can be reached at: info@SteelMarketUpdate.com or by phone at: 800-432-3475. Please note that our old Georgia phone numbers (those with a 706 area code) are no longer in service as we have moved our offices to Florida. Our new address is: P.O. Box 1255, Hobe Sound, FL 33475.

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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.)