Final Thoughts
Final Thoughts
Written by John Packard
September 15, 2017
We will begin our mid-September flat rolled steel market trends analysis first thing on Monday morning. Invitations to participate will go out at 8 AM ET tomorrow morning. We currently send out approximately 650 invitations.
Note: We are correcting the galvanized comparison of coating extras as Nucor has not yet made a change to the schedule they are using. I also want to remind our readers that when reviewing our CPI, or on Tuesdays our galvanized .060″ G90 pricing, we continue to use the existing U.S. Steel extras and not the new NLMK USA extras. I know that at least one index has gone to the higher extras. We will not make a move until U.S. Steel, Nucor and ArcelorMittal decide what they are going to do.
When negotiating contract pricing, steel buyers should be aware that things like coating extras can be negotiable. We understand, from conversations we are having with steel mills, that the process of negotiating 2018 contracts has started, although we are very early in the process. Coating extras will be one area where the domestic mills may be looking for higher prices.
As always, your business is truly appreciated by all of us at Steel Market Update.
John Packard, Publisher
John Packard
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Final Thoughts
Cliffs came tantalizing close to buying U.S. Steel in 2023. There were rumors in 2024 that Cliffs might buy NLMK USA before it ultimately purchased Stelco for $2.5 billion in November of last year. Who would have thought that asset sales would have been the focal point of discussion just six months later?
Final Thoughts
Given the news about tariffs and bringing back industries to the US, a brief look back in time may show how our economy changes with technological advances and the shifting economies of scale.
Final Thoughts
We’ve talked about tariffs ad nauseam for much of the year. And I’m afraid this topic isn’t going away anytime soon. There’s a feeling that the tariff “can” will just be kicked down the road again and again, and again.
Final Thoughts
Can technology help with pig iron and DRI/HBI tariffs?
Final Thoughts
Tariff-related noise aside, there is one basic factor keeping buyers on the sidelines. Despite recent declines, HR prices remain at historically high levels. And there is no obvious support to keep them there.