Final Thoughts
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Final Thoughts
Written by John Packard
February 24, 2020
We have adjusted our plate price momentum indicator from neutral to lower. Prices have been dropping over the past couple of weeks, and steel buyers are very negative on the markets right now (see some of the comments in an article above).
I have to tell you I am really struggling with all of the information I am collecting as I try to determine whether flat rolled price momentum is on the side of the steel mills, uncertain, or on the side of the steel buyers. Prices have been sliding recently and did again this week based on the data we collected. At the same time, some steel buyers are reporting extended mill lead times and anticipate higher scrap numbers coming next week (our sources are reporting a “strong sideways” to up $20 depending on the market and product). A few buyers have told SMU the steel mills are becoming more rigid in trying to hold their existing numbers. We are also hearing whispers of a pending price announcement out of the domestic mills as they attempt to stop the slide and stabilize the markets.
We are keeping our flat rolled price momentum indicator at lower for now based on the prices collected this week. However, my gut feel is we are close to a bottom unless the coronavirus begins to affect businesses here in the United States.
Stay tuned.
We will have a total of 27 sponsors for the 2020 SMU Steel Summit Conference. Of these, 20 spots are confirmed and two are tentative. This leaves five spots currently available. I want to say thank you to all our sponsors as well as our exhibitors for this year’s conference. Here are the sponsors for this year’s event:
Platinum Conference Sponsor: Red Bud Industries
Gold Sponsors: Kenwal Steel, Mill Steel, Bank of America, Crowe LLP, Big River Steel, Pacesetter, Heidtman
Silver Sponsors: Delta Steel Technologies, Nucor, Steel Manufacturers Association, BMO, Magic Coil Products, CME Group
Bronze Sponsors: Acero Prime, MidWest Materials, Paragon Steel, Alliance Steel, Ratner Steel
We are waiting for final confirmation of sponsorships from Ternium and Interlake Steamship Company.
If you would like to know what sponsorships are still available, please contact Jill Waldman at 303-570-6570 or by email: Jill@SteelMarketUpdate.com
This year we have 36 exhibition booths in our newly expanded exhibition area. Of these, 26 booths have been reserved, leaving 10 available should your company have an interest in reaching out to the anticipated 1,200 executives attending this year’s conference.
The current exhibitors are: XOM Materials, Red Bud Industries, Alcos, Andes Coil Processors, Ryder Dedicated Transportation Solutions, Braner USA, Inc., Riteload, Ryerson, Delta Steel Technologies, Dienes, Bank of America, Reibus, Crowe LLP, Pacesetter, Mobius Risk Group, Big Ass Fans, AkzoNobel Coatings, Inc., Georg, CRU and Steel Market Update.
If you would like to exhibit at this year’s event, please contact Jill Waldman.
Our next Steel 101 workshop is now two-thirds full. We still have seats available for the March 31-April 1 workshop, which will be held in Merrillville, Ind., just outside of Chicago. We will tour the NLMK Portage steel mill. You can find more details by clicking on this link.
A reminder that I will be out of my office beginning Thursday of this week and will not return until Friday of the following week (March 6).
As always, your business is truly appreciated by all of us here at Steel Market Update.
John Packard, President & CEO
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John Packard
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Final thoughts
SMU has heard from some larger buyers who have stepped back into the market to buy at prices that, if not at a bottom, they assess to be close to one. Is it enough to stretch out lead times and send prices upward again? Or do we continue to scrape along the mid-$600s per short ton (st) as we have been doing for most of the last month?
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/gears.png)
Final thoughts
Cleveland-Cliffs Chairman, President and CEO Lourenco Goncalves had some insightful things to say today about the steel market and about a conference we suspect might be Steel Summit.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/gears.png)
Final thoughts
They say a picture is worth a thousand words. Well, when you add in some commentary from respected peers in the steel industry to those pictures, that may shoot you up to five thousand words, at least. In that spirit, we’ve added some snapshots from our market survey this week, along with some comments from market participants.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/gears.png)
Final thoughts
I thought we’d have more clarity this week on Section 232, Mexico, and a potential carve-out for steel melted and poured in Brazil. As of right now, the only official comment I have is from the Office of the United States Trade Representative (USTR).
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/11/SMU-Steel-Summit.png)
Final thoughts
There are just 40 days left until the 2024 SMU Steel Summit gets underway on Aug. 26 at the Georgia International Convention Center (GICC) in Atlanta. And I’m pleased to announce that it's official now: More than 1,000 people have registered to at attend! Another big development: The desktop version of the networking app for the event has officially launched!