Steel Products
SMU Steel Summit to Host Reisman on Commodities
Written by Tim Triplett
April 11, 2018
Trying to predict the price of a metal is an exercise in futility, but MetalMiner strives to provide metal buying organizations with clarity around when and how much to buy, says Lisa Reisman, MetalMiner Executive Editor. Reisman will make another appearance at Steel Market Update’s 2018 Steel Summit Conference, set for Aug. 27-29 at the Georgia International Convention Center in Atlanta, to share her insights on the steel market, as well as aluminum, zinc and nickel.
While trade issues and tariffs have dominated the news, other drivers have also reinforced metals prices, Reisman says. Higher oil prices, for example, lend support to various commodities markets, including industrial metals. Moreover, the U.S. dollar continues to fall—having the inverse effect on commodities—which adds to the bullish outlook for metals. In March, aluminum stock levels fell in China for the first time in seven months. Other factors, such as strong domestic manufacturing and Chinese demand, will help drive U.S. metals pricing this year, Reisman says.
In rising markets, buying opportunities regularly present themselves. For example, companies that locked in steel prices last December or January of this year either with committed purchase orders or financial hedges bought on a price dip. As recently as December, service centers had offered long-term fixed contracts to buying organizations. The same patterns presented themselves for aluminum and stainless buyers. In rising markets, knowing when and how to identify those dips makes all the difference in meeting budget numbers or undercutting the competition. Deploying alternative strategies and tools in rising markets can make a big difference in EBITDA and COGS, Reisman says.
In August, MetalMiner will take a fresh look at metals markets and offer up some specific buying strategies based on current conditions. “In the meantime, stay on high alert for metal price volatility,” Reisman adds. “It’s going to be a wild ride!”
For details about the 8th SMU Steel Summit Conference you can go to www.SteelMarketUpdate.com/events/steel-summit or contact our offices at 772-932-7538. Only 135 days to go!
Tim Triplett
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