Final Thoughts

Final Thoughts

Written by John Packard


The question steel buyers are going to be asking themselves as this week begins is, will the Trump administration finally announce their findings on Section 232 and will this announcement allow President Trump to move on the duties or quotas expected by the domestic steel mills and many steel buyers?

The question I am asking myself is, what effect will the conversations and decisions made during the G20 meeting have on the Trump administration? Will the president wait and give the G20 the time for the G20 sherpas to file their report at the end of August? Will the president have the patience to let the world’s leaders address the issue or will he try to show them he is serious about addressing the over-capacities in steel?

Either way, I expect this to be another week where it will be hard to get a firm grip on the direction of supply and pricing. Any lack of transparency results in hand-sitting on the part of many steel buyers.

A reminder that we have released our next Steel 101 workshop for those who may be interested in joining us in Ft. Wayne, Indiana in early October. The weather should be wonderful and cool enough to make the tour of the SDI Butler steel mill a real treat. You can learn more about our program, instructors, lodging and meeting space as well as costs to attend on our website. Go to: www.SteelMarketUdpate.com/events/steel101

With Section 232 hanging over our heads this week should be yet another interesting one for the industry. Stay tuned to see what is going to happen next.

As always, your business is truly appreciated by all of us here at Steel Market Update.

John Packard, Publisher

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Final thoughts

Last week was a newsy one for the US sheet market. Nucor’s announcement that it would publish a weekly HR spot price was the talk of the town – whether that was in chatter among colleagues, at the Boy Scouts of America Metals Industry dinner, or in SMU’s latest market survey. Some think that it could Nucor's spot HR price could bring stability to notoriously volatile US sheet prices, according to SMU's latest steel market survey. Others think it’s too early to gauge its impact. And still others said they were leery of any attempt by producers to control prices.