SMU Community Chat
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/4e9bb2ca5a01be1a4154b285a1a8d788.jpg)
Majestic’s Leebow Sees Fundamental Changes in Steel
Written by Tim Triplett
February 10, 2022
Steel prices may be nearing the end of the current correction, predicted Majestic Steel USA President and CEO Todd Leebow during Wednesday’s Steel Market Update Community Chat.
In the great debate over where declining hot rolled prices will finally settle – back to historical averages in the $400-600 per ton range or closer to $1,000 per ton – Leebow predicts the “new normal” will be higher than in the past.
“In my opinion, I think we are near the bottom,” he commented during SMU’s webinar. There have been major changes in the industry landscape over the past 10-20 years, he noted, pointing to new players in the market, new leadership, mill consolidation and the transition from integrated to electric arc furnace steelmaking. “To say the market has not fundamentally changed would be naïve.”
Cleveland-based Majestic is a privately held distributor and processor of flat-rolled steel serving customers in manufacturing, construction and distribution from its network of locations across North America. Majestic’s latest growth initiative is a major new processing facility under construction on the campus of Nucor Steel Arkansas.
Demand is healthy and should get even better once the current “buyer’s strike” is over and customers who have been waiting on the sidelines for a lower price finally get back into the market, Leebow said.
“This is not the 2008-09 cycle. At least for now, demand is very strong. Customers are projecting the second and third quarters significantly stronger than what we have seen in the first. We are optimistic about demand. We just need to work through the short-term buyer’s strike and inventory correction.”
Steel pricing is not a one size fits all number. It varies widely by product, by geography and by mill. “Cold roll today is higher than coated, which does not make sense from a cost perspective. What does that mean? If means we are no longer in a cost-plus environment, we are in a market-driven environment,” he added.
Leebow is less concerned than many about the new mill capacity that will come online over the next few years. He sees it more as an opportunity than an oversupply. New galvanizing lines mean new business for Majestic. “From our perspective, the new coated capacity means more consumption of coated products. We believe there is more demand out there for coated product that is not being captured today. We are a supporter of the new capacity long term; however, we have to manage through it short term.”
Editor’s note: Missed the Community Chat with Todd Leebow? No problem. Click here for a recording of this and past SMU webinars. Our next, tentatively scheduled guest will be Johnny Sjöström, head of special steels for SSAB, beginning at 11 a.m. on Wednesday, March 2.
By Tim Triplett, Tim@SteelMarketUpdate.com
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/04/tim-triplett.jpeg)
Tim Triplett
Read more from Tim TriplettLatest in SMU Community Chat
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/01/cropped-SMU_Mobile_final.png)
Next SMU Community Chat to feature new Reibus CEO Jared Rowe on July 24
Reibus International Inc. CEO and Chairman Jared Rowe will be the featured speaker on the next SMU Community Chat webinar.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/01/cropped-SMU_Mobile_final.png)
SMU Community Chat: Bankers discuss M&A in metals
Two veteran investment bankers joined SMU's Community Chat on Wednesday, July 10, to talk consolidation and M&A in the metals industry.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/05/Jared-Rowe.jpeg)
Next SMU Community Chat to feature new Reibus CEO Jared Rowe on July 24
Reibus International Inc. CEO and Chairman Jared Rowe will be the featured speaker on the next SMU Community Chat webinar. The webinar will take place on July 24 at 11 am ET. You can register here. The live webinar is free for all to attend. A recording will be available only to SMU members.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/01/cropped-SMU_Mobile_final.png)
SMU Community Chat replay now available
The latest SMU Community Chat webinar reply is now available on our website to all members. After logging in at steelmarketupdate.com, visit the community tab and look under the “previous webinars” section of the dropdown menu. All past Community Chat webinars are also available under that selection. If you need help accessing the webinar replay, or if your company […]
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/01/cropped-SMU_Mobile_final.png)
SMU Community Chat: Back to building with Triple-S CEO Gary Stein
Looking out over the American economy, Triple-S Steel Holdings CEO Gary Stein believes what is required doesn’t fundamentally have to do with government policy. “Rather, it’s a mind shift.”