Final Thoughts
Final Thoughts
Written by John Packard
December 7, 2018
JSW Ohio (former Mingo Junction mill) has been struggling to get their existing electric arc furnace (EAF) up and running. It was supposed to have fired up last week, but we were told there is an issue with the oxygen, and the new ETA first heat date is Monday or Tuesday of this week. I am following this closely as I have been invited to visit the mill once the furnace is running. I will keep our readers advised on the situation at JSW Ohio and what that means for hot rolled supply and pricing as we move into the New Year.
I understand that Nucor is switching their zinc coating extras back to table “C” for contract customers. Are any of you having discussions with other mills regarding zinc coating extras?
We sent our SMU Service Center Inventories “Flash” Report to all data providers this morning. We are hopeful that the full report will be completed by the afternoon of Dec. 14. If your company is a data provider and you have any questions, or if your service center/wholesaler would like to participate in our service center inventories analysis, please contact DeWayne Tuthill at DeWayne.Tuthill@crugroup.com or by phone: 724-720-1008. I am also available to answer any questions you might have.
I will be traveling on Monday, Tuesday and Wednesday of this week as SMU is conducting one of our Steel 101 workshops to a sold-out crowd in Toledo, Ohio. I will return to my office on Thursday at 8 a.m. ET.
Paige Mayhair will be attending our Steel 101 workshop, as well. If you have any questions, please contact Brett Linton at 706-216-2140.
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
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.
Final Thoughts
Despite some scary headlines lately (especially about Trump potentially firing Fed Chair Jerome Powell) this is not October 2008 (financial crisis) or March 2020 (onset of the pandemic). But it sure seems like we’ve taken a relatively strong economy and poured a thick sauce of uncertainty over it.
Final Thoughts
I put some of our survey data through ChatGpt, with interesting results.
Final Thoughts
Nearly 50% of respondents to our latest survey thought hot-rolled coil prices have already peaked. And where will those prices be two months from now? Responses were decidedly split on that question.