Final Thoughts
Final Thoughts
Written by John Packard
September 5, 2018
I have received many questions regarding the variance in pricing between the various flat rolled steel indexes out there. I have been researching the methodologies between the indexes. I am asking each one to explain how their index works and to provide details or a better explanation in some of the gray areas that may not be as easily understood when reading their methodology online. My goal is to be able to provide as transparent an explanation about each index as possible. SMU and CRU discussed our methodologies last week during the SMU Steel Summit Conference. However, not everyone was able to stay for our discussion, so we will go into more detail on Sunday.
If you have any questions regarding our index, that of CRU or any other index, please send them to: John@SteelMarketUpdate.com
SMU published our Service Center Inventories “Flash” Report earlier today. It was sent to data providers and then included in today’s Premium Steel Market Update newsletter. The Flash report showed inventories as being lower (or trending lower based on 58 percent of the total data providers giving us their numbers). CRU worked with me this afternoon and we will begin showing our flash report as a diffusion index (with 50.0 being the same as the prior month). The diffusion index is 45.7, which is below 50 representing lower inventories. We continue to work on strengthening our Service Center Inventories Index. If your company would like to participate or would like more information about our index, please contact me at John@SteelMarketUpdate.com
Our Steel 201 workshop is sold out. I will be traveling to Middletown, Ohio, next week and will be out of my office on Monday, Tuesday and Wednesday, returning in mid-morning on Thursday.
Our next Steel 101 workshop is open for registration. The dates are Dec. 11-12, 2018, in Toledo, Ohio, and we will tour the North Star BlueScope steel mill. You can find more details at www.SteelMarketUpdate.com/events/steel101. We are now using the CRU registration system, so when you go to register the site may look a little different. It should be easy to complete. If you have any issues, please contact us at info@SteelMarketUpdate.com or by phone at 706-216-2140.
As always, your business is truly appreciated by all of us here at Steel Market Update.
John Packard, President & CEO
John Packard
Read more from John PackardLatest in Final Thoughts
Final Thoughts
Based on the amount of ‘out of office’ replies we’ve been receiving and the results of this week’s steel buyers’ survey, those pesky summer doldrums have arrived for the steel industry.
Final Thoughts
Maybe some of this uncertainty will get ironed out ahead of Liberation Day tariffs resetting higher rates on July 9. But if I had to place a wager, it would be on more drama and last-minute brinksmanship - whether it comes to the Liberation Day tariffs or the various Section 232s that are in the works.
Final Thoughts
What should you keep your eye on, considering the latest geopolitical events?
Final Thoughts
Not many people in the North American steel market had direct US involvement in another Middle East conflict on their bingo card. Prices weren't expected to shoot higher unless something unexpected happened. That unexpected something has now happened. And there is talk of oil at $100 per barrel. What does that mean for steel?
Final Thoughts
Now that the USS/Nippon deal has been completed, what's next?