Final Thoughts
Final Thoughts
Written by John Packard
December 19, 2016
A note about the MSCI data and carbon flat rolled inventories. The MSCI reported hot rolled supplies on the floor of the U.S. steel mills as being 2.21 months supply. Cold rolled and coated supplies were under 2.0 months based on MSCI statistics. Cold rolled was reported to be 1.90 months supply and coated at 1.75 months supply.
As one coated service center pointed out, the galvanized/Galvalume inventories represent 36.7 days supply and that is too low. The problem is the mill lead times are into February and, in some cases, close to the end of February. We don’t think coated inventories will bounce above 2.0 months until sometime later in the spring.
A note to our customers: Steel Market Update will need to raise prices modestly on both our Executive and Premium subscription levels. The increase, which will be $100 taking a one person Executive membership from $1095 to $1195 and Premium from $1995 to $2095, will not begin until February 1, 2017. We will send out a memo on the changes to our pricing in a special email later this week. As in past years if you wish to renew your membership prior to February 1, 2017 we will allow you to pay the existing price levels. If you have any questions give us a call: 800-432-3475.
As always your business is truly appreciated by all of us here at Steel Market Update.
John Packard, Publisher
John Packard
Read more from John PackardLatest in Final Thoughts
Final Thoughts
A short tour of key dates in the Nippon/USS deal, and what the future might hold.
Final Thoughts
I sort of expected big news last Friday and over the long, Memorial Day weekend. Because that's become more the norm than the exception for steel this year. Sure enough, Trump posted on Truth Social on Friday afternoon that he had given his blessing to a “partnership” between Nippon Steel and U.S. Steel. And then over the weekend we had market moving new on tariffs, this time involving the EU.
Final Thoughts
We're going to have to wait a bit longer for the final outcome of the Nippon/USS deal.
Final Thoughts
Sure, demand isn’t as good the market had hoped it would be earlier this year. But assuming it doesn’t fall of a cliff, buyers will have to restock at some point. And that might give domestic mills enough leverage to raise prices again.
Final Thoughts
While I would anticipate market sentiment to pivot and improve if all the questions around tariffs were answered, that still leaves us with a few other factors.