Final Thoughts
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/gears.png)
Final thoughts
Written by Ethan Bernard
January 18, 2024
This time of year my thoughts often turn to the weather. Specifically yesterday, heat cranked up, as I sped to a café because of an Internet service outage. It was cold here in Austin, Texas. Might’ve even dipped down into the teens in the last couple of days. And while the folks in the Midwest and Northeast may scoff at such balmy temperatures, it hits different here. The city sends out text messages telling you to stock up on vital supplies and prepare for the apocalypse.
Of course, a main worry is the electrical grid. When that goes down, all bets are off. People’s minds turn to the great Snowmageddon of the winter of 2021, which left nearly 10 million people without power, mostly in Texas. The National Centers for Environmental Information (NCEI) called it The Great Texas Freeze. THE NCEI said water pipes burst and “boil water advisories” were issued in many counties. Of course, following Murphy’s Law, this all took place during the Covid-19 pandemic.
While grid failure could represent a Category 5 for a household or business, other problems exist as the mercury plunges. With the latest cold snap occurring here in the US, managing your electric vehicle (EV) seems to be rocketing up the list of concerns.
Here’s a sample of headlines within the last 24 hours:
- EV drivers wrestle with cold weather sapping their battery range – NBC News
- Tesla owners say EV batteries won’t charge as brutally cold temperatures hit Chicago – USA Today
- Electric car owners confront a harsh foe: Cold Weather – New York Times
I think we can all agree that the great brains who have pioneered EV development did not imagine their vehicles only being driven in south Florida. (Though how to charge your EV as a hurricane approaches could be another issue.)
Still, as a corollary to what is termed “range anxiety” regarding EVs, we can perhaps add something new: Winter Worry? Or for the acronym minded: Cold-Activated Battery Syndrome (CABS). Because you’re worried you might need to hail one if your EV goes out? Well, let’s face it, you’d probably get an Uber.
With automotive a key market for steel, it’s important to put things in perspective. While there could be hiccups along the way, the overall trend is towards electrification of the fleet. In my recent conversation with Worthington Steel Geoff Gilmore, he was upbeat on the trendline of EVs. He said that even though the growth wouldn’t be a “straight line,” EVs seem to be the where market is heading.
Whatever happens in the presidential election this year, infrastructure is sure to remain a focus. The US is going to be busy strengthening the grid. We don’t really have a choice. And innovators in EVs will be tinkering with those batteries.
If cell phones can go from the size of a briefcase to that smartphone in your pocket, surely the engineers can figure out a recipe to beat the wintry frost? As for me, it’s supposed to climb to 70F as I write this in the early afternoon on Thursday, according to KVUE. Sure, it may be 36F tonight, and 47F tomorrow. But for today, here in Texas, I could be faced with that age-old issue of survival: I really hope my air conditioning works.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/02/SMU_EB_headshot.png.jpg-150x150.png)
Ethan Bernard
Read more from Ethan BernardLatest in Final Thoughts
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/gears.png)
Final thoughts
SMU has heard from some larger buyers who have stepped back into the market to buy at prices that, if not at a bottom, they assess to be close to one. Is it enough to stretch out lead times and send prices upward again? Or do we continue to scrape along the mid-$600s per short ton (st) as we have been doing for most of the last month?
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/gears.png)
Final thoughts
Cleveland-Cliffs Chairman, President and CEO Lourenco Goncalves had some insightful things to say today about the steel market and about a conference we suspect might be Steel Summit.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/gears.png)
Final thoughts
They say a picture is worth a thousand words. Well, when you add in some commentary from respected peers in the steel industry to those pictures, that may shoot you up to five thousand words, at least. In that spirit, we’ve added some snapshots from our market survey this week, along with some comments from market participants.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/gears.png)
Final thoughts
I thought we’d have more clarity this week on Section 232, Mexico, and a potential carve-out for steel melted and poured in Brazil. As of right now, the only official comment I have is from the Office of the United States Trade Representative (USTR).
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/11/SMU-Steel-Summit.png)
Final thoughts
There are just 40 days left until the 2024 SMU Steel Summit gets underway on Aug. 26 at the Georgia International Convention Center (GICC) in Atlanta. And I’m pleased to announce that it's official now: More than 1,000 people have registered to at attend! Another big development: The desktop version of the networking app for the event has officially launched!