Final Thoughts
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/fa8461c1f4400a438cb9704eff1f71ca.jpg)
Final Thoughts
Written by John Packard
May 11, 2020
Pandemic is a public health issue, not a political issue.
I watched just a few minutes of the Senate testimony today with Dr. Fauci, Dr. Redfield of the CDC, Dr. Hahn, commissioner of the Food and Drug Administration, and Admiral Giroir, the Assistant Secretary for Health. I thought one question and answer was interesting in this political environment. Dr. Fauci told the Senators (in response to one of their questions) that neither President Trump nor President Obama have held back efforts (previous or now) to develop a vaccine for COVID-19.
Fingers crossed, we may have a vaccine by early 2021. Until then….
Well, this is what everybody is wondering. What will the economy, jobs…life…look like until we get an effective vaccine?
We have been conducting weekly “Community Chat” webinars in an effort to answers questions, or at least provide market information and data for those attending to reflect upon as you consider your steel buying and selling decisions. The webinars are free and available to anyone. You do not need to be an SMU or CRU subscriber, nor do you have to be a high-level executive to register. Please let your sales, purchasing, logistics, financial and others within your organization know they are welcome to attend. The webinars are at 11 AM ET (10 AM CT, 9 AM MT and 8 AM PT) and last no more than 45 minutes.
We have a good lineup of webinar speakers over the next few weeks.
Wednesday, May 13, we will have Dr. Chris Kuehl of Armada Corporate Intelligence chat with me as we discuss the economy and what to expect in the coming weeks and months. Dr. Kuehl has been a speaker at multiple SMU Steel Summit Conferences and his wit and wisdom are always appreciated. You can register for this webinar by clicking here.
Wednesday, May 20, we will host John Anton of IHS Markit. Anton was the first economist SMU heard speak directly to the damage COVID-19 was going to have on the world and U.S. economies. He continues to have strong opinions on the subject. Anton is also a well-known speaker at SMU Steel Summit Conferences, and he is scheduled to speak at our conference with Timna Tanners of Bank of America this year. We will have a link for registration for this conference ready by Thursday of this week.
On Wednesday, May 27, we will host Barry Zekelman who is the Chairman and CEO of Zekelman Industries – one of the largest flat rolled steel purchasers in North America. Zekelman is a strong supporter of American manufacturing. I believe he will be both informative and entertaining. Registration will not open for that webinar until the end of next week.
If there is someone you would like to see participate as a speaker in one of our webinars, or a subject that is important that we haven’t addressed, please contact me at John@SteelMarketUpdate.com
My Opinion
That gurgling sound you are hearing in the market is steel buyers absorbing as little of the price increases as possible, and the echo is that of the steel mills pushing for as much as they can possibly get while keeping order books solid.
I think the market still expects another round of price increases between now and the end of the month. One of the steel mills told me they believe prime scrap could go to $350 per gross ton next month (June delivery). If true, that puts further pressure on the EAF mills to move prices higher. If they (EAF mills) think that a second increase will firm $500 per ton now, then you might see a third increase come late May/early June in order to move the numbers closer to $540-$550 per ton.
Stay tuned.
As always, your business is truly appreciated by all of us at Steel Market Update.
John Packard, President & CEO
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/04/john-packard.png)
John Packard
Read more from John PackardLatest in Final Thoughts
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/gears.png)
Final thoughts
Sheet prices didn’t roar back after Labor Day. But steel market news sure came out of the gate strong (or maybe chaotically is the better way to put it). First, the nearly $15-billion proposed sale of U.S. Steel to Nippon Steel exploded into the news. And when I say exploded, I mean that all sides seem to be escalating things now.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/gears.png)
Final thoughts
Welcome back from Labor Day, from Steel Summit, and from whatever fun you might have had over the long weekend. Personally, I enjoyed camping with friends and family near Starved Rock. No one starved, there were no major injuries, and we enjoyed the many splendors of Mystical Fire. (Speaking of which, does that have industrial uses? But I digress.)
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/11/SMU-Steel-Summit.png)
Final thoughts
I want to say a huge ‘thank you’ from all of us at SMU to all of you (more than 1,500!) who attended Steel Summit this year. We appreciate you taking time out of busy schedules to join us – whether that was up on stage, submitting thoughtful questions, or catching up over a drink and bite to eat. Also, a bit shoutout to everyone at SMU and at CRU who made this event possible. It’s no understatement to say that we have a fantastic team.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/11/SMU-Steel-Summit.png)
Final thoughts
Day one and two of SMU's Steel Summit 2024 are officially in the books. We covered a lot of ground, and the agenda sure did deliver.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/11/SMU-Steel-Summit.png)
Final thoughts
The big show is just about here. SMU Steel Summit will be getting underway on Monday. Where does the networking begin? I’d say at the airport. So don’t forget your business cards. And it can't hurt to wear a company golf shirt.