Final Thoughts

Final Thoughts

Written by John Packard


Everyone continues to watch for how the consolidation of the Severstal NA assets (Dearborn and Columbus steel mills) will impact the flat rolled steel markets. Early indications are for shorter lead times out of the SDI Columbus facility and Dearborn lead times are shorter than the Middletown and Ashland plants for AK Steel. But, it is still very early in the process.

The second item to watch are the ongoing contract negotiations between the domestic mills and their customers. One service center pointed out that if the negotiations are contentious and a large number of companies opt for the spot markets vs. contract markets this could impact mill order patterns and actually create a boost to orders late in 4th Quarter. If you have information about how negotiations are progressing we would like to learn more. Are the mills asking for higher prices? Are any changing their stance on CRU, Platts or any other index being used to adjust pricing?

As always your business is truly appreciated by all of us here at Steel Market Update.

John Packard, Publisher

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