Final Thoughts
Final Thoughts
Written by John Packard
January 16, 2015
While speaking with a couple of the secondary flat rolled steel distributors this past week, we got into a discussion about the advanced high strength steels (AHSS) and what impact they were having on the secondary market. A number of service centers pointed out that the product was fine for flat parts or those with a 90 degree bend. The product has been going into some construction products such as wall ties and edging. The issue is not the original form or bend put into the steel it is the secondary process such as knockouts finds the material too hard to work.
A secondary service center in the South told us regarding high strength steels, “New HSS products constitute an ever-increasing share of secondary steel and they are problematic because their physical characteristics make them unsuitable for many of the typical non-prime applications. These products are in some ways reverse engineering the supply chain for secondary users. It represents an opportunity for customers who can use these extremely hard steels, but a dilemma for those who cannot as the available pool of commercial grade steel diminishes. When the market tightens at some point in the future, those who have not adapted their processes to accept these new grades may well find themselves with limited sourcing and premium pricing for what limited amounts of material they are able to obtain. This trend to HSS does not appear limited to automotive, but is occurring in other segments as well.”
Something for both the supply chain and end manufacturing companies to think about. There is both a challenge to the existing supply and an opportunity for those companies who find alternative end uses for these new steels.
I will be traveling to Charleston, SC tomorrow and will be at our Steel 101 workshop on Tuesday and Wednesday. I expect to return to the office on Thursday.
We will have an excellent article on the energy market in Tuesday evening’s newsletter. I expect the article may come as a surprise to many of our readers.
We will conduct our next flat rolled steel market survey beginning on Monday morning. Look for your invite around 8 AM ET. If you are not receiving an invite to participate in our survey please shoot us an email at info@SteelMarketUpdate.com with your name, company name, position and email address. All responses are kept confidential.
As always your business is truly appreciated by all of us here at Steel Market Update.
John Packard, Publisher
John Packard
Read more from John PackardLatest in Final Thoughts
Final Thoughts
t this point in the game I think what we can say about Nippon Steel’s proposed buy of Pittsburgh-based U.S. Steel is that it will go through, it won’t go through, or the outcome will be something new and completely unexpected. Then again, I’m probably still missing a few options.
Final Thoughts
President-elect Donald Trump continues to send shockwaves through the political establishment (again). And steel markets and ferrous scrap markets continue to be, well, anything but shocking. As the French writer Jean-Baptiste Alphonse Karr wrote in 1849, "The more things change, the more they stay the same." (I thought the quote might have been Yankees catcher Yogi Berra in 1949. Google taught me something new today.)
Final Thoughts
President-elect Donald Trump will officially retake the White House on Jan. 20. I’ve been getting questions about how his administration’s policies might reshape the steel industry and domestic manufacturing. I covered the tumult and norm busting of Trump's first term: Section 232, Section 301, USMCA - and that's just on the trade policy side of things. It's safe to say that we'll have no shortage of news in 2025 when it comes to trade and tariffs.
Final Thoughts
Another presidential election cycle has come to an end. If you’re anything like me, part of you is just happy you no longer need to unsubscribe or “text STOP to opt-out” from the onslaught of political text messages this cycle produced.
Final Thoughts
With the US presidential election decided, ‘wait and see’ has quickly turned into ‘we’re about to find out.’ Following Donald Trump’s victory, I had a chance to sit down with Kevin Dempsey, president and CEO of the American Iron and Steel Institute (AISI). He gave his thoughts on what he thought we might see in Trump’s second term in office, and what it means for steel.