Final Thoughts
Final Thoughts
Written by John Packard
April 27, 2016
I am going to start my Final Thoughts today with a question. I am working on an article as part of my The Truth About Selling Steel series and I want to learn more from buyers and sellers of steel as to what the term “Value-Added” means? We hear this term used a lot in the steel industry. From a mill perspective value-added means products that go beyond the vanilla CS/B applications and through rolling, chemistry, coatings, etc. are deemed to be more valuable to the customer and more expensive to produce (and to purchase). I would like those of you who are buyers or sellers of steel to explain to me what you think “Value-Added” means. You can reach me at: John@SteelMarketUpdate.com
I have asked my LinkedIn group (Steel Market Update) as well as those connected with me on my personal LinkedIn page to comment on the subject. I know I have hit a nerve because LinkedIn is telling me it is one of the most active posts out there (at least in the steel world).
Now for the other side of the story. Watch Chinese iron ore prices carefully. I have heard that the Chinese mills have begun to drop export price offers. I am trying to check with my sources in Asia to see if this is true (and by how much). But, just about everyone in the steel industry thinks what is happening in China is a huge bubble (see our HR Futures Article in this evening’s issue) that will eventually burst. The question is when and how long before the aftermath comes to roost here in the U.S.? Right now, my opinion is we should have a tight market until 4th Quarter. I would love to know what you think.
As always your business is truly appreciated by all of us here at Steel Market Update.
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!