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
Sometimes new presidential administrations hit the ground running. No time for change like the present. And sometimes new administrations blast off on a SpaceX rocket bound for Mars. There’s a big universe, and we’ve got a lot of flags to plant. Such seems to be the case with the new Trump administration.
Final Thoughts
What’s been the impact of tariff threats on prices and demand? In short, not much – or at least that was the case when I was writing this column on Sunday afternoon. Spot activity for Canadian material, for example, has been put on hold over the last few weeks while the market waits to see what the new tariff landscape might look like.
Final Thoughts
Next Monday marks the start of the second Trump administration. The limbo we’ve been living in since Election Day in early November will finally come to an end. What better way to take a look at what’s coming up in Washington, D.C., than a conversation with Steel Manufacturers Association (SMA) President Philip K. Bell. He […]
Final Thoughts
It’s another week of big headlines and ho-hum pricing moves – which is to say the start of 2025 is looking a lot like the end of 2024. Scrap has settled up $20 per gross ton (gt). Steel prices, however, were a soft sideways this week. Chalk it up to uneven demand and abundant supply. And while we’re not aware of any major outages, some of you tell us that you’ve lost some shipping days here and there because of the recent cold snap.
Final Thoughts
I wrote in a Final Thoughts a few years ago that it seemed all the swans were black. More recently, I’ve been asked by some of you what the wildcards are for 2025. You could probably make the case that all the cards are wild now.