Final Thoughts
Final Thoughts
Written by John Packard
May 27, 2019
Editor’s note: John Packard is on vacation.
It appears many steel buyers are holding off on purchases while they wait to see if imports resume from Canada, Mexico and Turkey now that President Trump has reversed himself on the Section 232 tariffs. “Lead times are stagnating/shortening and the mills are in full negotiation mode,” said one steel executive this week, which helps to explain the declining steel prices reported in this issue.
Other telling comments from SMU’s latest market canvass:
“Like most buyers, I won’t buy at this level for fear of prices going lower. I’m concerned about how weak the market is.”
“I am not buying much these days. Like everyone else, we are becoming more cautious about 2H19 and I am pulling inventory down. The shrinking mill lead times allow us to have less on order because we can get it more quickly now.”
“Lead times are shorter than normal. We’re seeing mill production orders at both EAFs and integrated suppliers producing early. The mills are willing to negotiate.”
“We haven’t seen any new offers on products out of Mexico, Canada or Turkey yet. I think they will be cautious and try to stay under the radar.”
“Suppliers representing Turkish tons have gotten in touch. However, given the falling domestic market, and the remaining 25 percent tariff, I don’t think Turkish steel will be competitive as of now on flat-rolled.”
“It’s a tough market. It does appear we are getting close to the bottom. The question is, what will be the catalyst to reverse the momentum?”
Registrations for Steel Market Update’s Steel Summit, set for Aug. 26-28 in Atlanta, have passed the 600 mark and counting. It’s not too early to secure your spot at the industry’s premier educational and networking event. The registration link for the conference can be found here or you can go to our website: www.SteelMarketUpdate.com/Events/Steel-Summit
Want to get some recognition for that really talented young executive who’s raising the bar in your organization? Click here for information on how to nominate him or her for SMU’s new NexGen Leadership Award.
As always, your business is truly appreciated by all of us here at Steel Market Update.
Tim Triplett, Executive Editor
John Packard
Read more from John PackardLatest in Final Thoughts
Final Thoughts
We just wrapped up another Steel 101 workshop, easily the most hands-on industry workshop on steelmaking and market fundamentals.
Final Thoughts
The US scrap market finds itself in a familiar position as we progress into the final quarter of the year.
Final Thoughts
Musings on decarb, tariffs, and technology, and where it might be leading.
Final Thoughts
There are days when this feels like a “nothing ever happens” market. Don’t get me wrong. Plenty is happening in the world. It’s just that none of it seems to matter when it comes to sheet and plate prices.
Final Thoughts: AMU brings the news
Usually, I write about steel in this column because, well, we’re Steel Market Update. But before I get to steel, I want to give a shoutout to my colleagues at Aluminum Market Update (AMU) – SMU’s new sister publication.