Final Thoughts
Final Thoughts
Written by John Packard
December 13, 2019
New rounds of flat rolled price increases began on Friday with ArcelorMittal USA and NLMK USA taking the lead at $40 per ton. My expectation is the other mills will follow on Monday and Tuesday of this week.
Watch lead times – with some of the mills they are beginning to stretch. Steel Dynamics has been advising some of their customers that their galvanized order book for Columbus is in late February. Earlier in the week, the published SDI lead time sheet showed Butler as having mid-late January hot rolled, but all other products were either “inquire” or “closed” (P&O and painted).
Lead times indicate the strength of the order books and steel buyers need to stay close to their suppliers, and at the same time be aware of what the other mills are doing with their order books to make sure you don’t have a surprise.
SMU confirmed on Friday that Cleveland-Cliffs and soon to be AK Steel CEO Lourenco Goncalves will be one of our keynote speakers at the 2020 SMU Steel Summit Conference in Atlanta. Recently, Cleveland-Cliffs, an iron ore mining company, purchased one of their large customers, AK Steel. When the transaction is complete, Mr. Goncalves will be the CEO of both companies. He is always an entertaining speaker, and one willing to answer questions thrown at him from the audience. I think our 2020 attendees will enjoy hearing from Mr. Goncalves. The dates for the 2020 conference are Aug. 24-26 and it will be held at the Georgia International Convention Center in Atlanta.
As I mentioned the other day, SMU does have a limited number of seats available for the 2020 SMU Steel 101: Introduction to Steel Making & Market Fundamentals Workshop. The workshop is being held on Jan. 7-8 in Ontario, Calif. We will be touring the California Steel Industries steel mill as part of our workshop. We already have an interesting group registered to attend. If you have an interest in learning more about how steel is made, how it is rolled (flat, plate and long products), how various qualities of steel are made, how it is bought and sold, and what market forces influence pricing…you can find details on our website: www.SteelMarketUpdate.com/events/Steel101
On March 31 and April 1, 2020, we will conduct another Steel 101 workshop in the Portage, Ind., area. We will be touring the NLMK Portage electric arc steel mill as part of that workshop. Registration should be available sometime later this week, or by early next week.
A note about our publication schedule over the Christmas and New Year Holidays. We will not publish on Tuesday or Thursday (Dec. 24 and 26) as well as New Year’s Eve (Dec. 31). Our offices will be closed Dec. 24-26 and again on Dec. 31 and Jan. 1 for the holidays. We will publish on Sunday, Dec. 22 and Sunday, Dec. 29.
If you are looking to renew, upgrade or entertain getting your first subscription of Steel Market Update, you can do so through Paige Mayhair at 724-720-1012 or by email: Paige@SteelMarketUpdate.com
I am also available to answer any questions that you might have and can be reached at John@SteelMarketUpdate.com
As always, your business is truly appreciated by all of us here at Steel Market Update.
John Packard, President & CEO
John Packard
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Final thoughts
Sheet prices didn’t roar back after Labor Day. But steel market news sure came out of the gate strong (or maybe chaotically is the better way to put it). First, the nearly $15-billion proposed sale of U.S. Steel to Nippon Steel exploded into the news. And when I say exploded, I mean that all sides seem to be escalating things now.
Final thoughts
Welcome back from Labor Day, from Steel Summit, and from whatever fun you might have had over the long weekend. Personally, I enjoyed camping with friends and family near Starved Rock. No one starved, there were no major injuries, and we enjoyed the many splendors of Mystical Fire. (Speaking of which, does that have industrial uses? But I digress.)
Final thoughts
I want to say a huge ‘thank you’ from all of us at SMU to all of you (more than 1,500!) who attended Steel Summit this year. We appreciate you taking time out of busy schedules to join us – whether that was up on stage, submitting thoughtful questions, or catching up over a drink and bite to eat. Also, a bit shoutout to everyone at SMU and at CRU who made this event possible. It’s no understatement to say that we have a fantastic team.
Final thoughts
Day one and two of SMU's Steel Summit 2024 are officially in the books. We covered a lot of ground, and the agenda sure did deliver.
Final thoughts
The big show is just about here. SMU Steel Summit will be getting underway on Monday. Where does the networking begin? I’d say at the airport. So don’t forget your business cards. And it can't hurt to wear a company golf shirt.