Final Thoughts

Perhaps the biggest impact will be on the psychology of the market. Having GM back to work may prompt some of the OEMs to start buying again. The mills at the Metalcon show have been telling me their business is good, prices suck (of course) but the orders are coming in.

One mill put a date (tongue in cheek) of 18 days for market spot prices to reach the bottom. My opinion, and that of a few of the very large service center buyers, is we probably already hit the bottom of this cycle. The question, which I addressed in an article earlier in tonight’s issue, is how high can prices bounce and how long will the bounce last?

The information I have been gathering from the Metalcon show, which is filled with mostly metal building, roofing and other construction-related companies, is that business is good and next year is not looking bleak. If the early projections hold true, it will be a good sign as metal buildings tend to lead the markets (along with recreational vehicles).

The rumor that our California Steel 101 workshop is sold out is incorrect. We still have plenty of seats available for the Jan. 7-8, 2020, workshop. You can find more details about the program, our instructors, costs and how to register on our website: www.SteelMarketUpdate.com/Events/Steel101

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

John Packard, President & CEO