Final Thoughts
Final Thoughts
Written by John Packard
February 1, 2017
I debated about just changing our Price Momentum Indicator to Neutral just on hot rolled and cold rolled and leaving galvanized at Higher. The pricing pressure on coated products spot negotiations does not appear to be necessary when looking at the lead times. The question then becomes are the lead times perhaps a bit “padded,” as many customers are advising SMU that their orders are coming in early?
A galvanized focused service center told SMU this afternoon that the spot market was “a mixed bag.” He was concerned that spot prices out of service centers were beginning to drop and the market was much more competitive. He also told us that the spot market for his mix of galvanized products was very slow.
One of the steel mills (conversion mill) told us today that they just closed their order book for February and since their order book is 50 percent contract they are now into the 3rd week of March lead times….
The Steel 101 workshop for Toledo, Ohio is open for registration. The dates are April 11 & 12,2017 and the mill tour will be at the North Star BlueScope steel mill in Delta, Ohio. Registration and information about the workshop can be found on our website: www.SteelMarketUpdate.com. “Overall, a job well done explaining steelmaking and the market fundamentals to a varied audience. Whether you’re eight weeks or eight years in the steel business, there’s something in it for you.” Kari LaHaie, Magic Steel
Registration is also open for our 7th Steel Summit Conference which will be in Atlanta, Georgia on August 28, 29 & 30th at the Georgia International Convention Center. Our host hotel will once again be the Atlanta Airport Marriott Gateway Hotel plus their sister properties located across the street. “Anyone who is involved in the flat rolled business who does not attend this conference is missing out on an opportunity to grow personally as well as returning value to their organization.” Shane Morris, Commodity Manager, Crown Equipment Corporation
More information about the conference can be found on our website: www.SteelMarketUpdate.com
I want to also take a moment to thank our sponsors who have already committed to this year’s conference: Pacesetter, Bank of America, Mill Steel, Heidtman Steel, Alliance Steel, Magic Coil Products, Kenwal Steel, Midwest Materials. We have a limited number of sponsorships left. You can find a brochure on our website or contact us at: info@SteelMarketUpdate.com and we can provide one to you and advise what options are still available. We also have a limited number of exhibition booth space available as well. Questions? Call me at 800-432-3475.
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
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Final thoughts
SMU had the pleasure of attending the American Iron and Steel Institute's (AISI's) annual general meeting in Washington this week. It was a slow week in our nation's capital, so we were able to take a leisurely stroll around the National Mall and take in the sights. Just kidding. In fact, the meeting coincided with significant trade actions announced by the Biden administration. It included, among other things, additional tariffs on Chinese steel and aluminum.
Final thoughts
Our spot price is little changed this week after moving sharply lower last week on the heels of Nucor’s unexpected price cut. Here’s one thought on that trend: Nucor's weekly HR price (aka, its “Consumer Spot Price” or CSP) has to date functioned almost more like a monthly price.
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
Last week we wrote about a brief lull in price movement, labeling it a period of wait and see. It did, in fact, turn out to be pretty brief. This week... things are little bit different. Perhaps right now we are more in a period of "hope and pray" or "Here we go, hold on to your hats."