Final Thoughts
Final Thoughts
Written by John Packard
February 20, 2017
Galvanized steel buyers need to remain aware of the movement in zinc pricing. With the strike at the zinc-processing facility in Canada there is a possibility that zinc supplies could tighten here in the United States. Zinc prices have been trading on the LME in the $1.30-$1.35 per pound over the past week. At the beginning of January zinc was trading for $1.22 per pound. if the higher zinc prices continue (remember, the steel mills pay an additional $0.065-$0.08 per pound premium for the metal) then galvanized steel buyers should expect new higher coating extras for 2nd Quarter 2017.
I was actually surprised the only mills announcing price increases so far this week were Nucor, NLMK USA, USS/POSCO and CSN. But, when you actually investigate where mills are in their negotiations with customers, some had not slipped as much as others and the need to announce prices they are already collecting shouldn’t be necessary. The majority of steel buyers were putting the target base prices as being $31.00/cwt-$32.00/cwt on hot rolled and $42.00/cwt-$43.00/cwt on cold rolled and coated. Most of the service centers I spoke with today think the mills will be able to get back on track – especially if scrap goes up as many have been reporting over the past week or two.
We confirmed two more speakers today for our 7th SMU Steel Summit Conference (conference dates are August 28, 29 & 30, 2017 in Atlanta, GA). We are not making announcements as they happen as I prefer to complete a panel or segment before we go out and discuss what we are trying to accomplish. We try to bring in a taste of the “best” from past conferences and add in something new and different. Our goal is not to highlight steel mills but to rather discuss the steel industry. The goal is to look at the industry from various perspectives. I have already mentioned we will have a manufacturing panel for the first time. The panel will consist of three CEO’s of companies that are exposed to multiple market segments. This segment comes due to a suggestion from one of last year’s attendees and I think it will be interesting and enlightening to every attendee.
I know we have two of the best and most entertaining economists in Alan Beaulieu of ITR Economics and Chris Kuehl of Armada Corporate Intelligence.
SMU Steel Summit Conference is now 187 days away and we are way ahead of last year’s registration pace. You can register online at www.SteelMarketUpdate.com/events/steel-summit or you can contact our offices at: info@SteelMarketUpdate.com or by phone: 772-932-7538 or 706-216-2140.
Please tell your friends in the industry that the best steel conference in North America is held in Atlanta on August 28, 29 & 30th…
As always, your business is truly appreciated by all of us at Steel Market Update.
John Packard, Publisher
John Packard
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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.
Final Thoughts
Votes were still being counted when this column posted on Tuesday evening. And I’d be surprised if we know who the president will be by the time some of you are reading it on Wednesday morning.
Final Thoughts
Next week promises to be a big week for the country. Could even top the World Series (congrats to the Dodgers). As we all hold our breath to see what happens next, it’s a good time to reflect.
Final Thoughts
It’s official. U.S. Steel has made the first coil at Big River Steel 2 (BRS2). We congratulate the company and all the hard work that went into achieving that milestone. USS said BRS2 would begin shipments to customers this quarter. And we’re assuming those volumes will increase into Q1'25.
Final Thoughts
Nucor said it is seeking $740 per short ton (st) for hot-rolled (HR) coil this week, up $20/st from last week. USS, meanwhile, is shooting for up $30/st for sheet products in general. (USS did not announce a target price for HR.)