Final Thoughts
Final Thoughts
Written by John Packard
October 29, 2014
I adjusted the SMU Price Momentum Indicator from Lower to Neutral in recognition of the attempt by the domestic steel mills to reverse the price trend and move prices higher. A Neutral indicator means prices could move in either direction (or remain stable) over the next 30 days.
I understand two mills have made very modest price announcements of $20 per ton (AK Steel & US Steel). A third mill, Nucor, began verbally telling their customers today that their prices are up $20 per ton. However, I have not yet seen some of the other mills, who would normally fall in line with the AK and USS moves, making their announcements.
The initial reaction from steel buyers is generally supportive (service centers) although not necessarily enough to create a surge of buying at the higher numbers. We will have to watch and see what the “tone” of negotiations will be in the coming days. So far we are hearing the attempts to “push” prices as being somewhat feeble.
One of the coated service centers (galvanized & Galvalume) when asked about any new price announcements informed SMU that there were none. At the same time he pointed out the huge disparity between pricing in the south and that being seen in the Midwest and Great Lakes region of the U.S. He pegged the variance at close to or exceeding $100 per ton ($5.00/cwt).
Coated lead times from non-automotive steel mills are in late November and into December.
I will see what I can learn as I mingle with service centers attending the Association of Steel Distributors (ASD) meeting in Las Vegas beginning this evening.
As always your business is truly appreciated by all of us at Steel Market Update.
Got someone in the industry who hasn’t been able to find the time to become a SMU subscriber? Maybe you have a customer or supplier who doesn’t know what you are talking about when you mention Sentiment or our Price Momentum Indicator. If so, it sounds like they would be a good candidate as a company you should suggest to become a subscriber to our newsletter. When they do register make sure they put your company name in our “referral” box to insure your company will receive the $100 credit. The referral credit can be used on any workshop, conference, upgrade or renewal within 12 months of issue. If you have any questions please contact us at: info@SteelMarketUpdate.com
John Packard, Publisher
John Packard
Read more from John PackardLatest in Final Thoughts
Final Thoughts
Who could’ve guessed that the first stage to follow liberation would be confusion. Well, when things get this liberated this fast, perhaps it’s to be expected. From the 30,000-foot view, “Liberation Day” didn’t have a significant impact on steel tariff-wise. That is, the Section 232 steel and aluminum tariffs stand alone from the reciprocal tariffs […]
Final Thoughts
The market breathlessly awaits the arrival of President Trump's "Liberation Day."
Final Thoughts
I’m not sure what I can write today that won’t be old news after April 2. The Trump administration has dubbed Wednesday “Liberation Day.” Since it’s mostly about tariffs, let’s just call it “Tariff Day.” Or maybe we should call it “Tariff Week” – since tariffs typically dominate the news cycle in the first week […]
Final Thoughts
A personal perspective on Galvalume prices from SMU analyst Brett Linton.
Final Thoughts
After a March frenzy, are prices nearing a peak in April? Some of you have suggested that they are. Others think it's too early to make any such call.