Final Thoughts

Final Thoughts

Written by John Packard


A note to those interested in attending our Steel 101: Introduction to Steel Making & Market Fundamentals workshop in May. The workshop is about 50 percent fully registered at this time. The location is Merriville, Indiana just outside of Chicago. Our mill tour will be of the NLMK Indiana electric arc furnace (EAF) plant which produces slabs and rolls hot rolled coils. This is a good workshop for those interested in learning more about the steel making process, rolling process (both flat and long products), how steel is bought and sold and the issues which impact prices and relationships. You can find more details  on our website or you are welcome to contact our office for more information. We can be reached at: 800-432-3475 or info@SteelMarketUpdate.com.

I was reading the Armada Intelligence Brief this evening and Dr. Kuehl and his partner were concentrating on the fighting between Saudia Arabia soldiers and the Houthi rebels in Yemen.

On the face of this it just appears to be a regional conflict much like many others. However, the Houthi are supported by Iran and Yemen sits in a strategic point in the Middle East which could affect oil shipments through the Gulf of Aden. Any threat to the region would be met by the U.S. 5th Fleet. It could pit the Iranian navy (the same Iran we are negotiating with over nuclear testing, the same Iran fighting against ISIS in Iraq) against the U.S. 5th Fleet. What a crazy world we live in.

Dr. Chris Kuehl of Armada Corporate Intelligence will be at our 5th Steel Summit Conference where we can hear first-hand about all the craziness in the world and it’s impact on the U.S. economy. Mark your calendars: September 1 & 2, 2015 in Atlanta, Georgia, SMU Steel Summit Conference.

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

John Packard, Publisher

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Final Thoughts

It’s been another week of torrid speculation when it comes Trump and tariffs. And another week of mostly flat price movement when it comes to steel sheet and plate. As far as Trump and tariffs go, I think I might have lost track. We've potentially got 10% blanket tariffs on imports from China, 25% tariffs on imports from Canada and Mexico, 100% tariffs on the BRICs, and 200% on Caterpillar. Canada might be the 51st state. Mexico could be the 52nd state. But all can be resolved if you stop by Mar-a-Lago and kiss the ring?