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
Despite some scary headlines lately (especially about Trump potentially firing Fed Chair Jerome Powell) this is not October 2008 (financial crisis) or March 2020 (onset of the pandemic). But it sure seems like we’ve taken a relatively strong economy and poured a thick sauce of uncertainty over it.
Final Thoughts
I put some of our survey data through ChatGpt, with interesting results.
Final Thoughts
Nearly 50% of respondents to our latest survey thought hot-rolled coil prices have already peaked. And where will those prices be two months from now? Responses were decidedly split on that question.
Final Thoughts
A modest week-to-week change in HR price understates a huge swing in expectations.
Final Thoughts
What happens when ChatGPT meets SMU's Market Chatter? No, this is not an idea for the latest Hollywood blockbuster. Then again, with what Hollywood is putting out these days, Chatter Meets Chat might just turn out to be a hit. Rather, it’s that old idea of putting theory into practice. Recently, I conducted an interview with Doug Schrock, managing principal of AI at public accounting and consulting firm Crowe. He gave some tips on how to implement AI into your business.