Final Thoughts
Final Thoughts
Written by John Packard
September 4, 2019
Ferrous scrap prices are starting to settle as of today. Initial checks with some of our scrap sources found prime grades down $40 and obsolete grades down $30 in portions of the Midwest. We learned the Cleveland area mills bought busheling down $20 to $300/gross ton. We also learned of a purchase of HMS at $235/gross ton in Ohio as well. One of our pig iron experts predicted prices will have to move lower despite high iron ore prices. He reported an impasse between producers and consummers, but it will have to breakdown soon. The downward movement in pricing was expected and may help put pressure on flat rolled and plate prices moving forward.
California Steel Industries became the second mill to announce new coating extras. Based on our quick analysis, the CSI coating extras for galvanized steel are down 8 to 10 percent.
I contacted a couple of other coating mills who told me they were looking into their extras and would advise when something changes. My expectation is for most mills to make moves in their galvanized coating extras within the next week to two weeks.
Steel buyers should remain aware of zinc pricing and buyers of galvanized (and Galvalume where you need to watch zinc and aluminum pricing) need to be aware of the variations in extras from one mill to another. Steel Market Update does an analysis of coating extras on our website. You should look under the “resources” tab then “Steel Mills” to “Galvanized Extras” to “Coating Extras Comparison” which has been updated as of today.
If you are notified of any coating extra changes please forward them to info@SteelMarketUpdate.com or directly to me: John@SteelMarketUpdate.com
A reminder that our next (not yet sold out) Steel 101 workshop will be held in Fontana, California and will include a tour of the California Steel Industries steel mill. The dates for this workshop are January 7-8, 2020. We hope to have our registration page up and available within the next few working days.
If you have questions about renewals, upgrades or becoming a new subscriber to Steel Market Update, please contact Paige Mayhair at 724-720-1012 or by email: Paige@SteelMarketUpdate.com
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
The market breathlessly awaits the arrival of President Trump's "Liberation Day."
Final Thoughts
I’m not sure what I can write today that won’t be old news after April 2. The Trump administration has dubbed Wednesday “Liberation Day.” Since it’s mostly about tariffs, let’s just call it “Tariff Day.” Or maybe we should call it “Tariff Week” – since tariffs typically dominate the news cycle in the first week […]
Final Thoughts
A personal perspective on Galvalume prices from SMU analyst Brett Linton.
Final Thoughts
After a March frenzy, are prices nearing a peak in April? Some of you have suggested that they are. Others think it's too early to make any such call.
Final Thoughts
Have we hit a bit of a lull when it comes to the recent price bump? Mills certainly capitalized on the threat of tariffs and the unknown, with much that still could unfold.