Steel Products
SMU Steel Summit to Host Reisman on Commodities
Written by Tim Triplett
April 11, 2018
Trying to predict the price of a metal is an exercise in futility, but MetalMiner strives to provide metal buying organizations with clarity around when and how much to buy, says Lisa Reisman, MetalMiner Executive Editor. Reisman will make another appearance at Steel Market Update’s 2018 Steel Summit Conference, set for Aug. 27-29 at the Georgia International Convention Center in Atlanta, to share her insights on the steel market, as well as aluminum, zinc and nickel.
While trade issues and tariffs have dominated the news, other drivers have also reinforced metals prices, Reisman says. Higher oil prices, for example, lend support to various commodities markets, including industrial metals. Moreover, the U.S. dollar continues to fall—having the inverse effect on commodities—which adds to the bullish outlook for metals. In March, aluminum stock levels fell in China for the first time in seven months. Other factors, such as strong domestic manufacturing and Chinese demand, will help drive U.S. metals pricing this year, Reisman says.
In rising markets, buying opportunities regularly present themselves. For example, companies that locked in steel prices last December or January of this year either with committed purchase orders or financial hedges bought on a price dip. As recently as December, service centers had offered long-term fixed contracts to buying organizations. The same patterns presented themselves for aluminum and stainless buyers. In rising markets, knowing when and how to identify those dips makes all the difference in meeting budget numbers or undercutting the competition. Deploying alternative strategies and tools in rising markets can make a big difference in EBITDA and COGS, Reisman says.
In August, MetalMiner will take a fresh look at metals markets and offer up some specific buying strategies based on current conditions. “In the meantime, stay on high alert for metal price volatility,” Reisman adds. “It’s going to be a wild ride!”
For details about the 8th SMU Steel Summit Conference you can go to www.SteelMarketUpdate.com/events/steel-summit or contact our offices at 772-932-7538. Only 135 days to go!
Tim Triplett
Read more from Tim TriplettLatest in Steel Products
CMC to open rebar fabrication facility in Ohio
Longs producer and metal recycler CMC plans to open a new rebar fabrication plant in Akron, Ohio.
US and Mexico take action to curb ‘unfair’ trade
The US and Mexico announced measures on Wednesday to prevent tariff evasion and protect North America’s steel and aluminum industries.
Final thoughts
First off, we hope everyone had a safe and happy July 4th holiday, with fireworks seen and BBQs attended. Many parts of the country are quite toasty at the moment, signaling that, yes, summer has indeed arrived. And looking at our most recent survey results, the summer doldrums have arrived as well.
Active rig counts recover in US, slip in Canada
US drill rig activity moved back up last week after drifting lower for four straight weeks. Meanwhile, Canadian counts slipped for the first time after a seven-week rally, according to the latest data from Baker Hughes.
AISI: US steel shipments up in May from April, off from 2023
Domestic steel shipments increased in May month over month but have fallen on-year.