Final Thoughts

Final Thoughts

Written by John Packard


I have been buried with the project of resurrecting our premiere event over the last few months. Out of the ashes of the pandemic rises the new virtual SMU Steel Summit Conference. As with any endeavor Steel Market Update tackles, this task has had some unusual challenges. As the project has gathered steam, we have found that our platform presents us with opportunities we did not anticipate to introduce pure gems into the program.

You are going to hear me crow about the quality of the speakers from now all the way through to the end of the conference. Right now, I am speaking to every speaker, covering every angle, and preparing them to provide the best content possible during the time we have allotted. I know they are excited about doing this conference. We have shared the platform with most of them, and they see the value we are creating.

I anticipate doing some new things this year. Since this is a year of change, and we will be in a virtual setting, it is time to adapt to the new world order. The close of the conference will be unique in that I am bringing in two people I worked with during my steel sales career. They do not know one another and are located on opposite ends of the world. Over the years I have grown to appreciate their knowledge and have accepted their counsel on many occasions. The two guest speakers are Tom Cullen, owner of Magic Coil Products, and Micheal Setterdahl of the Global Advisory Board of the GFG Alliance. I worked for Tom when he was president of Duferco Steel Trading, and I was an agent that represented Michael’s company Novosteel. They have hands on, unique perspectives on the industry, both here and abroad.

If you have not yet registered for the 2020 SMU Virtual Steel Summit Conference you still have the opportunity to do so. You can click here, or you can go to www.smusteelsummit.com or you can send an email to Events@SteelMarketUpdate.com. We are here to help you and your company adapt to the new world because we don’t yet know what next year is going to look like… Oh, I did notice we are getting new companies who have never attended one of our conferences before. I’m an old sales guy, I want to meet the “new blood” before someone else does.

This week’s SMU Community Chat Webinar was about the platform we will be using for this year’s virtual conference. The 45-minute recording of the webinar is available to anyone who would like to view it. I think you will find it interesting, whether you plan on attending the conference or not. You can retrieve the recording by clicking here or going to www.SteelMarketUpdate.com/blog/smu-community-chat-webinars

I don’t speak of politics much on these pages. There are times and places to express one’s opinion, but a steel industry publication with a diverse client base is not the place to prosecute a position. Yet politics and political ideologies are there facing all of us each and every day.

This country is going through a change. Change is never comfortable. Just the opposite. I grew up in the 1960s. A time of assassinations, an unpopular war, racial and economic inequities and riots. It was also a time of hope as seen through my eyes as a child and then a young adult through the words and deeds of many brave men and women. It was a time when Congress and the president passed life-changing pieces of legislation such as Medicare and the Voting Rights Acts. We went to the moon and many claimed to have attended Woodstock. During my life I lived in Georgia for 32 years. Congressman John Lewis was laid to rest today in Atlanta. He was one politician I admired for his commitment from a young age, his courage to do hard things (especially so young), his passion for freedom, opportunity and equality for all Americans. Now, more than ever, I pray others will find the courage to follow in his footsteps.

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

John Packard, President & CEO

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Final thoughts

What's the tea in the steel industry this week? Here's the latest SMU gossip column! Just kidding... kind of. Yes, some of the comments we receive in our weekly flat-rolled market steel buyers' survey are honestly too much to put into print. Some make us laugh. Some make us cringe. Some are cryptic. Most are serious. We appreciate them all. Below are some highlights from our survey results this week. Some of the comments that we can share with you are also included, in italics, in the buyers' own words, with minimal editing on our part.

Final thoughts

Unless you've been under a rock, you know by know that Nucor's published HR price for this week is $760 per short ton, down $65/st from the company’s $825/st a week ago. I could use more colorful words. But I think it’s safe to say that most of the market was not expecting this. For starters, US sheet mills never announce price decreases. (OK, not never. It has come to my attention that Severstal North America rescinded a price increase back on Feb. 14, 2012. And it caused quite the ruckus.)

Final thoughts

Is it just me, or does it seem like the summer doldrums might have arrived a little early? I could be wrong there. It’s possible we could see a jump in prices should buyers need to step back into the market to restock. I’ll be curious to see what service center inventories are when we update those figures on May 15. In the meantime, just about everyone we survey thinks HR prices have peaked or soon will. (See slide 17 in the April 26 survey.) Lead times have flattened out. And some of you tell me that you’re starting to see signs of them pulling back. (We’ll know more when we update our lead time data on Thursday.)