Final Thoughts

Final Thoughts

Written by John Packard


Diana and I will be traveling on Monday and Tuesday on business and will not be available in our offices and will have limited use of our cell phones. If you have an issue, please contact Brett Linton at 706-216-2140 or send emails to info@SteelMarketUpdate.com.

I will be canvassing the market on Monday afternoon and Tuesday morning to see where spot prices are for this week. Thank you in advance for working with me to get the latest offers, as well as what transaction prices are for this week.

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Latest in Final Thoughts

Final thoughts

I’ve had discussions with some of you lately about where and when sheet prices might bottom. Some of you say that hot-rolled (HR) coil prices won’t fall below $800 per short ton (st). Others tell me that bigger buyers aren’t interested unless they can get something that starts with a six. Obviously a lot depends on whether we're talking 50 tons or 50,000 tons. I've even gotten some guff about how the drop in US prices is happening only because we’re talking about it happening.

Final thoughts

We’ve all heard a lot about mill “discipline” following a wave of consolidation over the last few years. That discipline is often evident when prices are rising, less so when they are falling. I remember hearing earlier this year that mills weren’t going to let hot-rolled (HR) coil prices fall below $1,000 per short ton (st). Then not below $900/st. Now, some of you tell me that HR prices in the mid/high-$800s are the “1-800 price” – widely available to regular spot buyers. So what comes next, and will mills “hold the line” in the $800s?