Final Thoughts
Final Thoughts
Written by John Packard
September 24, 2018
The number of flat rolled and plate spot transactions has dwindled over the past couple of weeks. End users are squeamish about ordering any steel other than what is needed for the work on the floor. Steel buyers are reporting a weakening of the top end of the range but firming at the lower ends. Plate prices continue to be solid due to controlled order entry (tight order books).
One of the service centers with whom I spoke earlier today told me that a month ago prices were slipping, then there was a week when things dropped a little more than expected. Over the past two weeks, things have firmed and the slipping seems to have subsided.
We were also told today that the rumor mill has Nucor leading with a price increase on flat rolled, especially if scrap prices rise this month (which they are supposed to do based on our research).
Our service center spot pricing results indicate we are not quite yet at capitulation, but we are getting close. As I stated in an earlier article, whether this means an increase is coming is not yet known. You would think the mills would be happy with HRC prices averaging $850 per ton…
I am in Pittsburgh today (Tuesday) and tomorrow and will return to my office on Thursday.
As always, your business is truly appreciated by all of us here at Steel Market Update.
John Packard, President & CEO
John Packard
Read more from John PackardLatest in Final Thoughts
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.
Final Thoughts
United Airlines raised eyebrows earlier this month when it provided two forecasts for 2025 – one assuming a relatively stable economy and another assuming a recession. The reason? Uncertainty around the impact of President Trump’s policy shocks on the broader economy. And it sometimes feels like we’re seeing a battle between those two narratives (stable vs recession) play out within in the pages of this newsletter.