Steel Mills
Final Thoughts
Written by Becca Moczygemba
April 6, 2023
Looks like the Easter Bunny left a price increase in our baskets this week.
After a price increase comes through, the question is always, “But will it stick?” This week’s market chatter contributors don’t seem to think it will. Many comments over the past few weeks refer back to long-term sustainability. Eventually, foreign prices will catch up to domestic prices, as they tend to do. Then it simply becomes a battle of lead times.
The capacity that many of us were expecting to come online has been slow going. And I think many people expected stocking to be heavier than it has been in the first quarter of the year. I’ve also noticed more buyers are waiting and watching from the sidelines. The companies that absolutely have the need due to increased jobs are buying, but what’s the incentive to restock right now?
Earlier this year, I heard predictions of a strong second quarter from various people. Solid order books and some backlog can support that up to a certain point. But if customers don’t need the material right away, they may turn to foreign suppliers. Imports are becoming more and more attractive for businesses who don’t have immediate requirements. And if you can get it at a better price, you’ll likely choose that route.
So maybe we’ve reached the peak with domestic pricing and maybe we haven’t. But as we hop into the weekend, let’s not worry about it. There’s always next week.
Friendly reminder, there will not be a newsletter coming out on Sunday due to the Easter holiday.
By Becca Moczygemba, becca@steelmarketupdate.com
Becca Moczygemba
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