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    Analysis

    June 5, 2019

    Final Thoughts

    Written by John Packard

    Today, June 6, is D-Day. I know there are many who read this newsletter who are well-removed from those who served in World War II. For us baby boomers, the children of the men and women who served either in the military or supporting the war effort at home, we learned early in life about the tragedy of war. Today, the public is horrified when any lives are lost in battles in Iraq, Afghanistan or elsewhere (I don’t mean to trivialize any loss of life as each loss is truly tragic). However, to put the losses we see today into context, according to Wikipedia, “Over 425,000 Allied and German troops were killed, wounded or went missing during the Battle of Normandy. This figure includes over 209,000 Allied casualties, with nearly 37,000 dead amongst the ground forces and a further 16,714 deaths amongst the Allied air forces.” On June 6, 1944, there were 10,000 casualties amongst the allied troops with 4,414 confirmed dead on that single day. Truly staggering and sobering numbers that should not be forgotten.

    Earlier this week we announced that the industry executive who will mentor for a day our 2019 SMU NexGen Leadership Award winner will be Mark Millett, Co-Founder, President & CEO of Steel Dynamics (SDI). This is an exceptional opportunity for one of the young rising stars in your company. There are a number of other benefits, as well. To be a “rising star” does not mean the individual must be at a managerial or executive level. We are looking for someone who is particularly creative within their role, or perhaps working outside of the box and assisting others in the company on how to recognize challenges and solve them in new and interesting ways. This person could be in a customer service role, information technologies, logistics, working on a factory floor, in sales, purchasing, accounting, credit management – you name it. We do not want to overlook anyone who is 35 years or younger and has talent.

    John Packard

    Read more from John Packard

    Latest in Analysis

    November scrap prices rise as market nears settle

    November scrap procurement has commenced in the US with buyers divided on the price increases from the previous month. Several mills reportedly sought a rise of $20 per gross ton (gt) while others saw $30/gt as the number. The $30/gt price tag mainly applies to the obsolete grades, like shredded, P&S and #1 HMS, with prime grades pulling up the rear at $20. SMU spoke to a Chicago-based source who said that market was up $30/gt and 20/gt on shredded and busheling, respectively. He also mentioned the integrated mills in this district are after heavier grades like P&S and railroad grades, like wheels. These grades have been in short supply since last summer. Our source believes they commanded prices up $30/gt while busheling was at plus $20.

    SMU scrap market survey results now available

    SMU’s November ferrous scrap market survey results are now available on our website to all premium members. After logging in at steelmarketupdate.com, visit the Pricing and Analysis tab and look under the “survey results” section for Ferrous Scrap Survey results. Past scrap survey results are also available under that selection. If you need help accessing the survey results or if your company would like to have your voice heard in our future surveys, contact smu@crugroup.com.

    Scrap export market activity perks up

    There has been an upsurge in Turkish deep-sea scrap buying over the last week for December shipment. Prices paid increased but not as much as the trade expected.cDuring the last week, Turkey-based steelmakers bought at least seven cargoes, largely from the UK and Northern European suppliers, while virtually shunning higher priced US scrap. The initial wave of sales of HMS 80/20 ranged from $395-$398.50 per metric ton (mt) on a CFR basis. This equated to an average increase of less than $5/mt. The was one cargo bought later at $401/mt from this region.

    Market chatter: Supply, not price, dominates steel buyers’ concerns

    On Monday and Tuesday of this week, SMU polled steel buyers on an array of topics, ranging from market prices, demand, and inventories to tariffs, imports, and evolving market events. We are sharing a selection of the comments we received below, in each buyer’s own words. Before diving in, we reviewed all the responses collected and compiled these key takeaways: Respondents overwhelmingly anticipate further increases. Buyers cite limited supply, mill delays, low inventories, and steady-to-strong demand. Most say demand is generally stable to improving, with some purchasing driven by fears of higher prices or unavailable material rather than stronger underlying consumption. Most respondents report faster inventory turnover, while shortages are constraining sales and, in some cases, prompting customer allocations. Buyers increasingly see imports as a way to secure scarce material, though domestic-origin requirements, delivery timing, and pricing risks remain obstacles.