Final Thoughts
Final Thoughts
Written by John Packard
September 26, 2018
I am back in my office after four very long days, mostly due to long and late flights to Minnesota, Pittsburgh and back to West Palm Beach. I will be in the office for most of the day on Friday should you need to reach me. I am off again on Sunday as I head to Chicago to attend the CRU North American Steel Conference.
I’ve been reaching out and speaking with my trading contacts. On Sunday, we will do one or two articles regarding the status of foreign steel import offers and more.
One of the traders I spoke with earlier today told me he thought the market was close to a bottom. “Buyers have to buy,” is what he told me. We discussed the Turkish situation with the 50 percent tariff. “Turkish business has stopped.” He told me he has a vessel docking soon where he will be paying the 50 percent tariff. He told me the duties come to approximately $1,000 per ton… (wow). I was told the 25 percent tariff has been “absorbed by the market.” When it reaches 50 percent, it’s just too high to collect and pass through.
On the East Coast there aren’t many options. There are no domestic sheet mills on the East Coast and freight rates are high. So, the expectation is for the buyers to continue to buy foreign.
I will have more in Sunday’s issue of SMU about foreign steel imports and the status of the market now and looking forward into first-quarter 2019.
Again, if you need to reach me on Friday, I can be reached at 800-432-3475 or by email: John@SteelMarketUpdate.com
As always, your business is truly appreciated by all of us here at Steel Market Update.
John Packard, President & CEO
John Packard
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