Analysis
Final Thoughts
Written by John Packard
March 7, 2018
I am in Scottsdale, Ariz., attending the Fabricators and Manufacturers Association (FMA) annual meeting. I was asked to speak on a panel with Nucor Executive Vice President for Flat Rolled Ladd Hall and Don McNeeley, President of Chicago Tube and Iron. The timing of the conference couldn’t have been better for the fabricators, toll processors and service centers who made up the majority of the 300 attendees. President Trump was the main topic since he was about to announce his final decision on Section 232 tariffs.
Dr. Chris Kuehl of Armada Corporate Intelligence and FMA’s Chief Economist began his comments with, “We have been treating the steel industry as an industry bastard-child for years.” That theme leaked into other presentations including the Packard, Hall and McNeeley panel.
The opinion of those on my panel was that the 25 percent tariff the president was about to announce was nothing more than a negotiating position, giving the president some leverage over NAFTA negotiations and trade negotiations with others around the world.
A number of the manufacturing companies in the audience were concerned about their ability to compete against foreign manufactured products. They are also concerned about what will happen when they have to re-quote manufactured parts to end OEMs, and then that business is shopped because of the severe increase in steel costs.
I will have much more on the FMA conference in Sunday’s issue of our newsletter.
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 Analysis
Final Thoughts
Most steel buyers think that steel prices will continue to rise into the 2026. But they don’t see the kinds of big gains that have characterized past market upturns, according to the results of SMU’s latest steel market survey.
Brazil pig iron market activity picks up
The pig iron market in Brazil saw some activity last week that could present some additional options to producers there, but at lower price levels.
SMU flat-rolled market survey results now available
SMU’s latest steel buyers market survey results are now available on our website to all premium members.
Key takeaways from CRU’s US Ferroalloys Connections Summit
CRU analysts break down their top takeaways from CRU's 31st Annual Ferroalloys Connections Summit, held Oct. 19-21 in Miami.
SMU Steel Demand Index improves but remains in contraction
SMU’s Steel Demand Index remains in contraction, according to late October indicators. Though growth faded at a slower pace, it rebounded from one of the lowest readings year-to-date from earlier in the month.