Final Thoughts

Final Thoughts

Written by John Packard

October 26, 2016

We continue to watch flat rolled steel prices as anytime the mills announce a price increase it takes time to develop the “target” price. You have to remember that there is a range of prices – not everyone was paying $470 per ton for hot rolled coil before the price increase announcements were made. Some were lower and some were higher. We think the target range coming out of most of the steel mills is $480 to $500 per ton ($24.00/cwt-$25.00/cwt) for hot rolled.

I want to dig a little deeper when it comes to cold rolled and coated base price offers on spot. Remember, buyers have been dealing with the higher than normal spread between hot rolled and cold rolled/coated base prices.

I am hearing that buyers have “gotten off the fence” and begun to place their spot and contract orders. One large HR service center told us late today, “This was an abrupt end to the downward slide [in prices]. It got a lot of end users off the sidelines. There has been a wave of orders coming in.”

A note to those who will be attending the FabTech show in Las Vegas. Steel Market Update will be presenting a two-hour mini version of part of our Steel 101 workshop. The class is free and will be conducted at the Las Vegas Convention Center from 8 AM until 10 AM on Friday, November 18th. You can find more information on the FabTech website or just drop an email to info@SteelMarketUpdate.com and we will make sure you get the details.

Both Steel 101 instructor John Eckstein and I will also attend the Association of Steel Distributors (ASD) meeting which is also in Las Vegas as the same time as FabTech. You can find out more information about the ASD meeting and social schedule on their website.

Our Memphis, Tennessee Steel 101 workshop is completely sold out. This will be our largest workshop and we are looking forward to touring the brand new Big River Steel mill.

We have already begun taking registrations for our January Steel 101 workshop which will be held in Huntsville, Alabama and we will tour the nearby Nucor Decatur steel mill. Details about the Huntsville workshop can be found on our website.

As you begin to look at your 2017 calendars please remember to block out August 28, 29 & 30th as you will want to be in Atlanta for our 7th Steel Summit Conference…

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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