Final Thoughts

Final Thoughts

Written by John Packard


There could be a further divergence between hot rolled base pricing and that of coated steels. With the combination of the corrosion resistant “final determination” ruling by the US Department of Commerce and the reduction of hot rolled price offers from offshore into the United States, well, things are a little out of whack. In normal times we tend to see a $100 to $120 per ton spread between hot rolled base pricing and that of cold rolled and coated steels. In other words if hot rolled is selling for $630 per ton (SMU average for this week) you would expect CR and coated to be $730 to $750 per ton (base + extras). That is not the case right now as CR and coated price offers are well above $800 per ton.

Yesterday (Wednesday) I spoke with a Turkish trading company who reported prices are dropping based on the latest hot rolled offers for imports into the United States (July shipment). June tons (shipment) were sold up to $29.50/cwt CIF, Duty Paid, USA Port ($590 per ton). Offers right now are at $28.00/cwt-$28.25/cwt ($560-$570 per ton) and seeing resistance from buyers. Other traders reported similar findings of HRC price offers as being lower by $20 to $30 per ton since the last deals were made.

Trade, steel/metals/commodity/scrap pricing forecasts, challenges facing the steel mills as well as the challenges facing service centers and toll processors will all be addressed at this year’s Steel Summit Conference in Atlanta on August 29-31st. Clear your schedule and plan on attending what is quickly becoming THE premium steel event of the year. The location is convenient for those who have to travel by air. It is an easy (and free) short train ride to the Georgia International Convention Center (www.GICC.com) and the host Atlanta Airport Marriott Gateway hotel. We have included our schedule in tonight’s newsletter but, you are also welcome to visit our website: www.SteelMarketUpdate.com for more details, costs and registration. Don’t let the Memorial Day holiday slow down your plans to attend. I look forward to seeing you in Atlanta!

With Monday being a holiday we will not publish our newsletter on Sunday evening and will return to normal operations on Tuesday of next week. We wish everyone in the U.S. a safe and enjoyable holiday with family and friends.

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.