Final Thoughts

SMU asked: Do you expect the mills to announce another round of price increases in September? Here’s what some readers had to say:

“Yes. Given both the ongoing extension of lead times and the amount of increases in scrap prices for September, there’s clearly momentum in favor of the mills at this time. It appears many mill locations have been able to close October order books already and the remaining open space should be filled soon. The question then becomes, how fast will the November order books fill? Buyers are likely taking a breather following the torrid change of circumstances in the market over the last four weeks. The October index set price for November is quite a ways off, so buyers may be cautious in placing November contract tonnage levels until that is known.”   

“We see strength until the November order book fills. How quick November fills will be an indicator of continued strength.” 

“In light of further-restricted slabs from Brazil, little imports and several planned mill outages, we expect another round of increases soon.”   

“I fully expect another increase for galvanized of at least $60 per ton. Galv is booked solid, and with BRS offline for 14 days and lead times over nine weeks, the mills will get the increase.”

“Buyers that didn’t buy at the bottom are stuck with large +$100/ton increases in the spot market. I have a number of competitors calling and asking to buy steel from my company. We are sitting tight in a great inventory position.”

“The market has no option but to accept the price increases as mill order books are heavy due to increased demand—primarily automotive and tin.” 

“If November order books fill quickly, we will see another $40 increase. The mills won’t rest until they see $600 a ton HR.”

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

Tim Triplett, Executive Editor