Final Thoughts

Final Thoughts

Written by John Packard


I have to apologize to those who are looking for insightful steel comments from me today. I’ve been busy with the final details of the 2019 SMU Steel Summit Conference, reviewing the SMU NexGen Leadership Award nominations and planning for the next few Steel 101 workshop locations and dates. My focus has been a little askew today.

I spent the vast majority of the day talking with speakers – Mark Millett of SDI, Ladd Hall of Nucor, Lynn Lupori from CRU, Timna Tanners from Bank of America Merrill Lynch, Paul Lowrey of Steel Research Associates, Chris Houlden of CRU, Chris Kuehl of Armada Corporate Intelligence… There will be a lot to talk about, and we have an excellent crop of speakers.

I can tell you the SMU Steel Summit Conference is going to be one incredible networking, information gathering, steel lovefest this year. This year’s conference will be the place to be seen. If you have not already registered, you can do so by clicking on this link.

John Packard Summit 18The SMU room blocks at the Gateway and Atlanta Airport Marriott hotels have been exhausted. The  Atlanta Airport Marriott Gateway, SpringHill Suites, Renaissance and Atlanta Airport Marriott have all been sold out (at least our room block is sold out). We have made arrangements for 50 additional rooms at the Westin Atlanta Airport Hotel, which is across the street from the Atlanta Airport Marriott. We will arrange for the shuttle bus servicing the Marriott to also service the Westin. To make a reservation at our room rate of $135 for a single bed and $155 for a double, the general reservation phone number is 404-762-7676; ask for the Steel Market Update or CRU room rate. We should have a link on our website sometime during the day tomorrow (Friday).

If you are having issues getting a room reservation, please send an email to Events@SteelMarketUpdate.com.

For those of you who plan ahead – the 2020 SMU Steel Summit will be Aug. 24-26.

We still have about 5-6 spots left for the Oct. 8-9, 2019, Steel 101 workshop in Cincinnati, Ohio. We will have a tour of the Nucor Gallatin facility as part of this workshop. You can learn more and register by going to www.SteelMarketUpdate.com/events/steel101 or contact us at Events@SteelMarketUpdate.com

The first Steel 101 workshop of 2020 will be in Fontana, Calif. (or that area, we haven’t selected the final hotel yet) and we will tour the California Steel Industries steel mill.

I hope by the time of our conference I will have most of the steel training workshop sites selected along with dates. I just need the time to get to everyone.

Renewals or looking to become a new subscriber to SMU? Please contact Paige Mayhair at 724-720-1012 or by email: Paige@SteelMarketUpdate.com. Paige will also be manning the SMU exhibition booth during the conference. Don’t forget to stop by and say hello.

As always, your business is truly appreciated by all of us here at Steel Market Update.

John Packard, President & CEO

Latest in Final Thoughts

Final thoughts

Thanks to everyone who attended our Steel Hedging 101 workshop in Chicago on Wednesday. I learned a lot from StoneX Group’s Spencer Johnson, who instructs the course, and from your good questions. One thing that Spencer said sticks with me as I write this column. Namely, that momentum drives steel prices more than other commodity markets. If you watch steel futures, you’ll see up days and down days. But it’s rare to see the momentum shifting back and forth within any given day.

Final thoughts

SMU's prices ranges for flat-rolled steel were mostly sideways on Tuesday even as futures market shot higher. I got some questions as to why hot-rolled (HR) coil futures shot higher. As best as I can tell, it might have been in response to news that China plans to roll out stimulus measures. We have details on those measures here thanks to our colleagues at CRU. The chart below gives you some idea of just how sharply upward the move in HR futures was earlier on Tuesday: