Analysis
Final Thoughts
Written by John Packard
March 19, 2018
SMU is receiving many requests for information and help regarding Section 232 exclusions and how to complete the process. We are attempting to assist when and where possible. Trade attorney Lewis Leibowitz is being very helpful when he has time. If you have specific legal issues that are outside of the scope of what we can cover, we recommend that you contact Lewis directly. His contact information is at the bottom of the “Section 232 Exclusion…” article in tonight’s issue.
I participated in a HARDI steel conference call this morning. There were many more people on the call than usual (not a surprise) and there were executives on the call that were willing to provide more information than normal (a pleasant surprise). One of the keys brought up was the idea that availability is going to dominate the industry. Price will be a secondary factor, and the opinion of one service center was prices could go much higher than people may think. Prepare for it.
However, a wholesaler on the HARDI call voiced a different opinion, an opinion we have heard today from others in the industry. This owner told us, “…While I would not discount anything [service center’s owner name not shown] has to say regarding the steel market, we personally do not share in how bullish he is. We feel that managing and mitigating risk may be the biggest challenge we will have to face sometime in the second half of the year. We don’t want to be sitting on too much inventory when prices start back down.”
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John Packard, Publisher
John Packard
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