Final Thoughts

Final Thoughts

Written by John Packard


A busy past 24 hours in the steel industry as the steel mills begin to make moves to stop the downward spiral in prices. As is our norm, Steel Market Update adjusted our SMU Price Momentum Indicator from Lower to Neutral. This is something we have done when the steel mills as a group go out to the market and attempt to move flat rolled steel prices. We do not want to be viewed as hindering their attempt and we will evaluate their progress and adjust our indicator as to what we believe to be the appropriate direction prices will move over the coming 30-60 day time period. At this point, we do not think the increase is a slam dunk in favor of the steel mills.

I have been following a story regarding paint price increases out of Valspar and most recently AKZO Nobel. The two companies have announced a 4 percent price increase which is being challenged by many in the paint community (Valspar and AKZO may disagree with me). The increases are not to be collected until later this spring so we will continue to follow this story. If you have information which you would like to share on the topic please contact me at: John@SteelMarketUpdate.com or by phone at: 800-432-3475.

During my conversation with one of the mill rep’s I spoke with today – the subject of dumping suits came up (as in not yet filed). This mill rep was sure that there will be cold rolled dumping suits filed (soon) against China. This rep also felt it was only a matter of time on coated products. However, in a separate conversation with one of my sources I heard that one of the big mills is not going to support a dumping suit on coated products.

I want to take a moment to welcome our newest member companies to Steel Market Update. We thank you for joining our little group of fired up companies and I encourage you to interact with myself and my team. If you have items of interest, want to suggest a topic for us to cover or want to make a suggestion which you think will make us a better company – by all means do so. I can be reached by email at: John@SteelMarketUpdate.com and the company in general is: info@SteelMarketUpdate.com.

A note to our Premium Level members – we will have a Premium Supplement issue of SMU in your inbox tomorrow.

As always we want to take this opportunity to thank all of our customers and to let you know that your business is truly appreciated by all of us here at Steel Market Update.

John Packard, Publisher

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