Final Thoughts
Final Thoughts
Written by John Packard
April 26, 2022
First, I want to commend Michael Cowden for the outstanding Final Thoughts he has been creating for our readers. I also want to thank the SMU team for doing an excellent job over the past few weeks since Tim Triplett retired. We have new people coming soon, but in the meantime Brett Linton and David Schollaert have been doing an exceptional job.
Our days have become extremely hectic as we try to make sense of the market and deal with our daily tasks.
My day consists of dealing with Zoom or Teams meetings on a wide array of topics. Today it was fine tuning the final content and speakers for two of the programs for this year’s SMU Steel Summit Conference, speaking to the Introduction to Steel Hedging Workshop, speaking to our NexGen Community steering committee, and working on content for this evening’s issue of the newsletter.
I recently asked several of our readers what was the number one issue affecting their company? The response I got back was focused on one topic, that being problems in locating and keeping employees.
I think many companies are struggling to attract younger people to fill roles within their organizations because their culture does not fit with the lifestyles, wants, and needs of a younger generation of workers. As you look about the industry, you will find there are organizations who have developed an inclusive, tech savvy, well-being focused environments that naturally attract both experienced and younger workers.
How do you change your culture? I am working on locating a keynote speaker for the 2022 SMU Steel Summit Conference who can address the importance of culture and how to change the culture of your company. I hope it will be the beginning a dialogue that will benefit both our industry and your organization.
Another way Steel Market Update has been focused on worker issues is through what needs to happen as company’s attempt to attract and then keep new young talent. This was one of the reasons why we began the SMU NexGen Leadership Award four years ago as a way for companies to recognize young talent.
SMU is taking what we learned through the process of developing our Leadership Award. The NexGen Leadership Award community is evolving into a new organization we are calling the NexGen Community. This free organization will focus on those 40 years old and younger who are involved (or wish to be involved) in the greater steel community. The NexGen Community is being created as a way for individuals within the industry to network, mentor, educate, and inspire themselves and others to remain focused on their steel careers and to remain in this industry so many of us love. (By “steel”, I mean any company that is exposed to steel. This includes manufacturing, distribution, production, processing, etc.)
This group continues to evolve, and I am looking forward to being able to bring you more details about it, how to join (membership will be free), events associated with the group, discounts for SMU/CRU events and workshops, and much more. The steering committee is hard at work, and there will be much to share in the coming days and weeks.
As I mentioned, I have been working on the 2022 SMU Steel Summit Conference quite diligently as we fine-tune our program topics and the speakers who will be associated with each panel or keynote.
Between COVID and the war with Ukraine, international events are creating volatility in steel prices, limiting supply of commodities as well as products (such as computer chips), all of which are impacting both the global and North American steel industries. We have three speakers who will address the global industry and how it has changed over the past few years, as well as how likely it will continue to change over the next few. On Monday afternoon, Aug. 22, Johnny Sjostrom, president of SSAB Specialty Steel; Michael Setterdahl, special advisor to GFG Alliance, and Panos Kotseras, lead analyst for the Steel Group at CRU, will speak on the global reorganization of the steel industry. I will moderated this panel. I am excited about the way this panel has come together, and I think the discussion will be helpful for North American companies as they try to understand what is happening away from our shores – which ultimately impacts North American businesses.
As I share specific pieces of our program, I hope you will recognize the value these speakers will bring to you and your organization. We anticipate 1,200 executives at this year’s conference, and I invite you to join them. You can learn more about our program, speakers, NexGen Leadership Award nomination process, costs to attend the conference, how to book hotel rooms, and how to register by clicking here or going to: https://www.events.crugroup.com/smusteelsummit/home
A quick note about hotel rooms: We know the hotels will all sell out during the Aug. 21-24 dates around the conference. (The conference itself is Monday, Aug. 22, with a 9 AM start, through Wednesday, August 24, with an expected end time of 2:30 PM.) We control many of the hotel rooms in our room block. To access the room block, you will need to register for the conference first. After you register, you will receive a link that allows you to access the hotel room block. No outside third party has access to our room block, and you should ignore unsolicited offers to book you rooms for our conference. Right now, there are plenty of rooms available for our attendees. Should you have any questions please contact: conferences@crugroup.com
As always, your business is truly appreciated by all of us here at Steel Market Update.
John Packard, Founder
John Packard
Read more from John PackardLatest in Final Thoughts
Final thoughts
Sometimes even in a bit of chaos there is complacency. And it seems that since March 2020, “a bit of chaos” has been the order of the day. That means in the world at large, and in steel specifically.
Final thoughts
SMU had the pleasure of attending the American Iron and Steel Institute's (AISI's) annual general meeting in Washington this week. It was a slow week in our nation's capital, so we were able to take a leisurely stroll around the National Mall and take in the sights. Just kidding. In fact, the meeting coincided with significant trade actions announced by the Biden administration. It included, among other things, additional tariffs on Chinese steel and aluminum.
Final thoughts
Our spot price is little changed this week after moving sharply lower last week on the heels of Nucor’s unexpected price cut. Here’s one thought on that trend: Nucor's weekly HR price (aka, its “Consumer Spot Price” or CSP) has to date functioned almost more like a monthly price.
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
Last week we wrote about a brief lull in price movement, labeling it a period of wait and see. It did, in fact, turn out to be pretty brief. This week... things are little bit different. Perhaps right now we are more in a period of "hope and pray" or "Here we go, hold on to your hats."